NTPC Buyback 2020

1. The total installed capacity of the NTPC is 62,910 MW (including JVs) own stations include 24 coal based, 7 gas based, 1 Hydro 1 Wind 11 Solar and 1 Small hydro plant. Under JV, NTPC has 9 coal based, 4 gas based and 12 renewable energy projects. The capacity will have a diversified fuel mix and by 2032, non fossil fuel based generation capacity shall make up nearly 30% of NTPC’s portfolio. NTPC has been operating its plants at high efficiency levels. As on 31.03.2019 the company had 15.5% of the total national capacity and, it contributes 22.3% of total power generation due to its focus on high efficiency.

2. NTPC became a Maharatna company in May 2010. As of January 2020, there are 10 Maharatnas CPSEs in India. NTPC is ranked No. 2 Independent Power Producer(IPP) in Platts Top 250 Global Energy Company rankings.

3. NTPC has comprehensive Rehabilitation & Resettlement and CSR policies well integrated with its core business of setting up power projects and generating electricity. The company is committed to generating reliable power at competitive prices in a sustainable manner by optimising the use of multiple energy sources with innovative eco-friendly technologies thereby NTPC is contributing to the economic development of the nation and upliftment of the society.

Buy Back Offer Deal:

Buyback Type: Tender offer
Buyback Record Date: Nov 13 2020
Buyback Opening Date: Dec 07 2020
Buyback Closing Date: Dec 18 2020
Buyback Offer Amount: ₹ 2275
Date of Board Meeting approving the proposal: Nov 02 2020
Date of Public Announcement: Nov 02 2020
Buyback Offer Size: 2.19%
Buyback Number of Shares: 19,78,91,146
Price Type: Tender Offer
FV: 10
Buyback Price: ₹ 115 Per Equity Share

Details of Buyback:

Buyback of not exceeding 19,78,91,146 of equity shares of face value of Rs. 10 each ("Equity Share") (representing 2% 'of the total number of fully paid-up equity shares in the paid-up share capital of the Company) at a price of Rs. 115 per equity share (the "Buy Back Offer Price") payable in cash for an aggregate consideration not exceeding Rs. 2275,74,81,790 the "Buyback Offer Size" representing 2.19% & 2.01 % of the aggregate of the fully paid-up equity share capital and free reserves as per the audited standalone and consolidated financial statements of the Company, respectively for the financial year ended March 31, 2020.

Salient financial parameters:

Particulars (in Crs) Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20
Sales 79,957 73,396 82,042 88,083 1,00,287 1,09,464
Expenses 62,632 54,847 60,480 65,709 77,588 77,878
Operating Profit 17,324 18,550 21,562 22,375 22,699 31,586
OPM % 22% 25% 26% 25% 23% 29%
Other Income 2,365 1,206 1,627 5,686 2,830 8,209
Interest 3,669 3,366 3,753 4,447 5,605 8,189
Depreciation 5,565 5,771 6,010 7,460 8,669 10,356
Profit before tax 10,456 10,618 13,426 16,154 11,255 21,250
Tax % 4% -2% 20% 35% -25% 44%
Net Profit 9,986 10,801 10,720 10,544 13,737 11,600
EPS in Rs 10.09 10.92 10.83 10.66 13.88 11.72
Source: Screener.in

How to Participate in buyback?

1. Firstly, to be eligible for the buyback the investor should have shares of NTPCBuyback 2020 in demat or physical form as on record date [13.11.2020] 2. Once you have shares in demat, you can participate in the buyback process which is opening from [07.12.2020 to 18.12.2020], by selling your shares through your broker on NSE or BSE. 3. Then on [30.12.2020] the payment will be given to you for accepted shares and unaccepted shares will be returned to your demat account.

Profit from the buyback on the bases of acceptance Ratio:

Buy 1739 Shares at CMP of Rs.90( 2,00,000/115=1739)
Acceptance Ratio 33% 50% 75% 100%
Amount Invested in Buyback 156510 156510 156510 156510
No. of Shares buyback 574 870 1304 1739
BuyBack Profit 14347 21738 32606 43475
Profit 9.17% 13.89% 20.83% 27.78%


Review and Recommendation of NTPC Buyback from our IZ team is: 7/10 1-5: Fair 5-7: Good 7-10: Excellent. [Expected AR = 30%] In NTPC, we are receiving lot of queries regarding how shares are accepted in buyback. So, we have taken 3 test cases from comments and have deciphered the issue. Link  


    This i hope will clear the confusion
    ER =13.91
    Acceptance = 32.36
    First calculate entitled shares(.1391*shares in record date)
    Then subtract these from shares that you tendered
    Calculate the accepted shares from these remaining shares
    Now add entitled and accepted shares and you wil get the final figure

    Shares in record date – 1999
    Entitled shares – 278(.1391*1999)

    Remaining shares -1721(1999-278)
    Accepted shares – 557(.3236*1721)

    Final accepted – 835(557 + 278)

    1100 shares still left in account
    Should we hold or sell this
    Any chances of this going diwn

      Can someone please explain to me how the acceptance ratio is calculated for me?
      I had 6425 shares on the record date and I offered 4425 for the buyback but only 308 shares are accepted. This is nowhere close to the acceptance ratio mentioned in the other commitments.

        You fall under HNI Category. So, your AR is different from others.

        The ratio was applicable for retail shareholders who has shares worth less than 2 lakhs. The ratio is much less for others

    I had 70 share on record date. I have submitted 40 share for buyback through sbicap securities but only 19 share were accepted against 30 please help.

    I had 750 shares on record date…eligibility was for 104 shares…I tendered 250 shares only…
    Acceptance is being said to be around 40%…so all my 250 should have been accepted…
    However only 151 are accepted…
    Anyone knows why?

      I have still not got the confirmation, the acceptance % shares is always related with the offered quantity nor with our holding.

      A/c 1. Holding 200, Entitlement 27, Offered 200 , Accepted 83.
      A/c 2. Holding 400, Entitlement 55, Offered 200, Accepted 102.
      Hence Acceptance ration is not a flat figure. First accepted upto entitlement , then praportioane additional cceptance wrt additional offered.
      Please comment if it is true.

        Y R true.
        It’s can also be understand like this-
        Kishen Harendra has 104 eligible shares. If he tendered only 104 , than 100% acceptance will be there in place of 42%

      I had 1000 shares.. ER was 139 i.e 13.9% but I submitted all 1000.. They accepted 418 shares….. Now calculate if this helps

    I had 1739 shares as on record date, my entitlement was 241 shares. I tendered 500 shares in buyback. Today I got mail from zerodha regarding ntpc buyback contract note in which only 325 shares got accepted.

      Same case…tendered 250 out of 750 but only 151 got accepted…
      This is rather strange and baffling…

    I believe this platform is for sharing right information at right time for the benefit of group members.
    Members should feel happy to share the information as and when available with them.
    Discussions about a buy back candidate before announcement of record date may help the group members to buy shares of particular company in advance
    Will definitely benefit the group members a lot.
    NIIT has already announced buy back at 240 rs against the mkt price of 203
    Incidentally I shared the information about this company a few days back

      In my demat account all the ntpc shares are getting reflected
      It looks still they have not finalised the basis of acceptance of offered shares
      Can any body throw a light on the issue

    Hello Everyone, I had 14,724 shares of ntpc which I had tendered for buyback, i had the shares with me as on 11th november record date, wanted to know is it only 1739 shared will be eligible for buyback?, as of now my entire shares have been tendered by me…please guide

    Someone help me. I had 690 shares. I applied for buyback on 18 Dec and my order status was confirmed. But today in my kotak securities no order is showing in buyback. Also my DP showing all 690 shares. What should I do now

      It looks Kotak securities has still not updated so far, in my Kotak securities account also so far no share has been debited s,I believe this will get updated today.

    Many investors sold the unaccepted shares today also in anticipation of shares coming tommorow in demat because today’s delievery volume of ntpc in nse is 77lakh shares which was unusual.

    835 shares accepted against 2,000 shares.

    Amount for accepted shares will be credited tomorrow & also unaccepted shares will get released on the same day.


    Any body having information about % of accepted shares of NTPC against offered shares for buy back.

    Board of NIIT recommends buying back of about 7% of issued shares at a price of Rs 240
    Record date is yet to be announced

    Dear Market Wizard have you got any information regarding ntpc acceptance ratio, please inform

    Wipro Buyback offer date announced:-

    Date of Opening of the Buyback Offer Period Tuesday, December 29, 2020
    Date of Closing of the Buyback Offer Period Monday, January 11, 2021
    Last date for Settlement of bids on the Stock
    Wednesday, January 20, 2021

    Ntpc is a closed thing now
    Members having information about other buy back offer may share the information indicating the record date of offers in pipeline

    When we will get credit of shares tender in buyback. And what is the final ER declared by the company

    NTPC Buyback :

    Number of small shareholders on record date – 8,00,541

    Number of shareholders participated in buyback – 1,03,251

    Around 7 lakh small shareholders skipped the Buyback

    As on Record date around 21 Cr shares are held by shareholder in small shareholder category as against 21 Cr only 8 Cr shares offered under Individual category out of which if we assume 3 cr as HNI, nearly 75% shares not came from BB

    Where we can see recommendations of short term and long term investment in equity shares
    Do we get daily recommended investment ?

    There are few factors of NTPC Buyback:

    Overall BB offer over subscribed by 5 times

    Individual shareholder as per shareholding pattern are around 7 lakhs where as participants of BB are nearly 1 lakhs only

    If we consider all individual category applicant shares which are around 2.75 which includes HNI as well

    Seems 65-75 % AR

    I agree.As per latest SH data average SH of individual retail plus HNI is 250 shares.Taking into acct.some fresh retail investor the average may go upto say 400 shares.If about 90k retail investors submitted than total tendered shares should be 3.6 cr.ie 83pc AR.

    Total available shares for buyback are 19.78 crore then what is basis of calculation that shares tendered 7.14 crore if any data is wrong please reply and clear the confusion of acceptance.

    Total tendered shares are 7.14 Crores. It consists of HNIs and Individuals.

      Out of 7.50 cr shares if we consider 2.5 cr hni and 5 cr retail.
      Then acceptance ration will be 60%
      Whats your view market wizard.7.5 cr me kitne hni hoge?

      Agree with you. But I believe AR can be approx 65-70 because participants are also very less

        I agree.As per latest SH data average SH of individual retail plus HNI is 250 shares.Taking into acct.some fresh retail investor the average may go upto say 400 shares.If about 90k retail investors submitted than total tendered shares should be 3.6 cr.ie 83pc AR.

      in retail category already bidded shares 6,62,06,396 ( 4:15 PM , 17/12/2020 ), how it possible AR 50 % ??

      MW…. does it means that many shareholders not participating in BB offer and therefore there is chance of higher AR

    Members pl note that buy back offer of ntpc is closing at 11 am of 18 th dec 2020
    Pl take note of it

    I have got demat account with Kotak securities, when I tried to submit my ntpc share under buy back, I get a message that in case of holding in other than default dp. You are requested to contact customer service dealer
    What does it mean
    Should I submit my shares for buy back after getting this msg

    There seems to be an error on this page or at Zerodha…
    Last date of applying is today 16th Dec 2020 till 18.00

    If some one has still not applied , better to do instantly…

      You would have got offer letter with expected Acceptance ratio.
      May be you can submit 500 and sell remaining in open market.
      You would surely be a non retail and Govt would take the major stake…
      Don’t expect more than 5% any how…

      What I expect more than 50% of offered shares are likely to be accepted under buy back offer.

    All Experts,
    As ntpc buyback offer is opened from today itself to 18th of December.
    I just want to know that, is there any difference I mean preferential in between whether you tender your shares on opening day or last day or on any other day during the slot??
    Experts please..

      If a person has 1739 (or less) shares in his demat a/c as on the Record date, he’ll be treated as Retail investor in this case. (1739 * 115 = 119985 i.e. less than 2 lac.). He can submit either all this qty. or even less as per his will and wish under the buyback offer.

      No of shares calculated would be according to the price on the record date
      Not the buyback price
      Price on record date was below 100
      So it’s fine even if u hold 2000 shares

        It looks doubtful, even if you presume, it will be better to surrender all and buy from the mkt at current rate

      I’m watching NTPC since its first IPO in 2004. Except for the first 5-6 years, it became like a Tortoise. But is a good bet considering the Good dividend and even offers like Bonus shares / Bonus debentures. But it can’t compete NMDC which is very superior from the point of its dividend history.

    Hi Market Wizard, i would need your view, I was holding 100 shares of NTPC on 11-Nov. And i sold 50 shares on 12-Nov (Ex-Date) and another 50 shares of NTPC on 13-Nov (Record Date) . But i didn’t get any email from NTPC for buyback entitlement. Also i checked in the link https://t.co/4K3BLKdEQq with by DP number, no records found. Please let me know whether my 100 shares i sold on ex-date and record date eligible for buyback ? And i am using Zerodha account.

      These days brokers are deducting the shares the same day of selling. Please contact Zerodha and ask them for the same.

        sure, Thanks. I got below from their QnA site today, hope it will be helpful for others. Please see the last 2 points.

        This means that, if you sell stocks on the ex-date you are eligible for the benefits of the corporate action. However, on the record date, since the shares will still be lying in our pool Demat account (as settlement takes 2 days to complete). So, the benefits of the corporate action will be given to us which we will pass on to you.

        1. Dividends will be credited to our bank account, which we will credit to your trading account.
        2. Shares from Bonus’, Splits, Mergers & Acquisition will be credited to our pool account, which we will transfer to your trading account. If the bonus or split ratio is uneven, cash settlement will be done. For example, if the ratio is 2:3, and you have 25 shares, you’ll get 72 shares and the balance in cash.

        Note: You will not be eligible to participate in buyback/takeovers if you have sold shares on the ex-date.

      U are not entitled for buyback
      In n zerodha u need to keep shares till record date

      Yes…. This need to be taken care for all types of corporate actions specially for Buyback

    I bought 2000 shares
    Entitlement is 278
    In between I sold 500 shares at 90

    what is the expected acceptance ratio
    Should I further buy 500 shares at ~95 as the difference is still considerable(20rs difference)

    Dear Administrator,
    Please add EIL & GAIL also for buyback of these are finalized.

    Pleas add Engineers India Ltd for buyback. Is it by Tender? what is the recommendation? Guide early so that we can buy shares before the price rise.

    Please reply my query that i had 1739 shares in my demat account as on record date and out of them I sold 1289 shares and bought 50 shares after record date , currently I am holding 500 shares including 50 shares bought after record date, if I tender full 500 shares including additional 50 shares ( bought after record date) in buyback, will my submission get recjected Or not because I am tendering additional 50 shares bought after record date, please reply.

    can anybody please tell me whether a hardcopy of the form needs to be sent to registrar of NTPC Buyback or just applying online in demat is sufficient?

    anyone knows how to participate buyback in angel broking….i brought the shares in angel broking …can anyone please help me

      i have angel ac. once buyback window opens on 7th dec, then just beside your holding equity name (NTPC) you will see the option for buyback. Else from the corporate action section or through your broker you can do it.

      I have angel broking Demat ac. I have received a buyback email from alankit (REGISTRAR). NOW I NEED TO SUBMIT FORMS (RECEIVED IN EMAIL) stating no of shares I want to tender.

    NTPC Category Ratio of Buyback
    Reserved Category 91 Equity Shares out of every 654 fully paid-up Equity Shares held on the Record Date
    General Category 9 Equity Shares out of every 518 fully paid-up Equity Shares held on the Record Date

    (The above Ratio of Buyback is approximate and providing indicative Buyback Entitlement. Any computation of
    entitled Equity Shares using the above Ratio of Buyback may provide a slightly different number due to rounding
    off. The actual Buyback Entitlement for Reserved Category for Small Shareholders is 13.91452254% and General
    Category for all other Eligible Shareholders is 1.737460002%

    Reserved Category 91 Equity Shares out of every 654 fully paid-up Equity Shares held on
    the Record Date.

    General Category 9 Equity Shares out of every 518 fully paid-up Equity Shares held on
    Record date

    Entitlement ratio for retail – 13.91 %

      Please reply my query that i had 1739 shares in my demat account as on record date and out of them I sold 1289 shares and bought 50 shares after record date , currently I am holding 500 shares including 50 shares bought after record date, if I tender full 500 shares including additional 50 shares ( bought after record date) in buyback, will my submission get recjected Or not because I am tendering additional 50 shares bought after record date, please reply.

    *Ntpc Buyback*



    I had 1200 shares of ntpc on record date. I want to sell and buy 200 now. Am I eligible to submit 1000 for buy back?

    As on record date of NTPC buyback, I was having NTPC shares in my Demat account with Karvy stock broking, now I get transferred my shares from Karvy broking to some other Demat account, I want to know How I can tender my shares for buyback through other broker, which was held in my old Demat account and were eligible for buyback but now transferred to a new account through offline transfer/ transfer of account

    I want to know that Can I tender more share in respect of eligible share for buyback means suppose I have 1000 share of any company before record date and my eligible share for buyback as per accepting ratio of 50% is 500 , can I tender full 1000 share for buyback.

      Yes and you should!!
      But the acceptance of the extra share would depend on the extra share submitted and eligible shares NOT Submitted by others.
      Seeing current condition, it appears approx 50-60% of extra can be accepted…

      I had 1200 shares of ntpc on record date. I want to sell and buy 200 now. Am I eligible to submit 1200 for buy back?

      You can definitely tender more shares than entitlement. The maximum no of share that can be tendered in buyback by a share holders is however limited to no of shares held on record date.

    Bought 1100 shares before record date and sold 800 in slight profit on Diwali. Hope remaining would be accepted in buyback…
    Any idea of acceptance ratio.

    Market Wizard Sir,
    Your posts are very informative.
    Please give your opinion on other buy back offers viz NMDC, Indian Toners and Mayur Uniquotes.
    Thank you

    Sir i have 2000 shares in my demat account .am I eligible for buyback ? How many shares I need to put in buyback .pls suggest

    sir i have online demat account with edelweiss what is last date of buying ntpc share for buyback

      Yes you are eligible. The main point here is to ensure that the shares are present in your demat on the record date.

    Why HPCL is still not considered for even mentioning in this portal.Today they have declared buyback price rs 250

    if record date is 11 Nov, then which is last date for buying? and on which date we can sell all shares? i have account in Zerodha.

          You can sell the shares on the next day after the record date .If you want .The main point here is to ensure that the shares are present in your demat on the record date.

        On 14
        You can sell
        If you expect acceptance ratio will be 50%
        Then keep 50% holding and sell the remaining
        If u think price will crack further in future then sell fully and buy at lesser price the shares equivalent to expected acceptance ratio

    Can some expert please explain if NTPC buyback is also subject to Shareholder approval like TCS?
    If not, why so? I see that record date is already announced, so looks like approval is not required.

      Not required. If the buyback size is less than 10%. No approval is required.

    *Msearch NTPC Buyback update*

    *What should retail investors do with NTPC post buyback announcement?*

    Key data points for buyback acceptance:
    Total offer size : ₹ 2,275 Cr or 19,78,91,146 shares
    Buyback price: ₹ 115/-
    Buyback Offer Size: 2.19% of paid up capital
    FV: ₹ 10
    Buyback type: Tender offer
    Acceptance ratio: Approx. 30-60%

    *Msearch View:*
    We believe that the proposed buyback will be in the interest of retail investors as the shareholders of the company will benefit from return of surplus cash through the buyback programme. Stock has been an underperformer, and has already shed one-fourth of its value year-to-date and recently the stock has seen traction on the back of hopes of a buyback and looking at the proposed buyback rate of ₹ 115 against CMP ₹ 86 translating upside of 34%. As per our calculation acceptance ratio comes around 30-60% which is attractive to retail investors. NTPC also offers a healthy dividend yield of 7%-8% and is trading at an attractive valuation with P/E of 7x and P/BV at 0.7%. *Hence we recommend retail investors to buy NTPC with an opportunity to make decent gain on the back of buyback.*

      Cosmo Films is not that much of an trustable scrip for arbitrage as the recent jump is due to buyback announcement and the CMP is unsustainable .This buyback will be a classic trap as after the ex-date the price will correct to an huge extent and to sell rest of the unaccepted holdings after the buyback you may have to wait for at least 1-2 years as this is an range bound low volume scrip.

    Why stock of NTPC is underperforming in the last 5 years?

    1. NTPC main problem is the huge trade receivables which has increased from 8000 Crores to 20000 Crores in the last 5 years. This means the company is not getting payments from DISCOM in time.

    2. India is a country of surplus power. This means capacity is more and demand is less. NTPC plants hardly run on their capacity.

    3. Lower tariff of solar energy has reduced drastically in the last years denting the revenue of NTPC.

    In short, power companies in India are struggling.

    Why NTPC is coming up with a buyback?

    The cash of NTPC is on decline.

    2015= 14000 Crores

    2020 = 3000 Crores

    Now with this buyback, the cash will reduce further. Then why they are bringing buyback.

    The reason is government finances are in doldrums. The fiscal deficit is touching 7-8% and with projection of GDP decline of as high as 10% means , the government main source of income i.e. taxes are not coming think and fast due to COVID-19 disruption.

    So, that is why Government has decided to do buyback of 8 PSUs to suck out cash.

      Any view on what could be the Buyback price?

      How does buyback price gets determined…i am still learning so trying to understand.

        The buyback price is decided by management. Most of the time it is more than CMP in the market.

          1. To be eligible for the Retail Investors the number of shares should be around 1740 Shares.

          2. The number of shares reserved for Retail investors are 29683671.

          3. As per Annual Report, no. of shares between 1-5000 are 145804644.

          4. So, if we divide 29683671/145804644 = 20%.

          5. So, on an approximate basis, the AR could be around 30%. If the price moves towards the buyback price, then AR could be even higher.

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