ONGC Limited Buyback 2018

Overview of the ONGC 

Maharatna ONGC is the largest crude oil and natural gas Company in India, contributing around 70 percent to Indian domestic production. Crude oil is the raw material used by downstream companies like IOC, BPCL, and HPCL to produce petroleum products like Petrol, Diesel, Kerosene, Naphtha, and Cooking Gas-LPG.

This largest natural gas company ranks 11th among global energy majors (Platts). It is the only public sector Indian company to feature in Fortune’s ‘Most Admired Energy Companies’ list. ONGC ranks 18th in ‘Oil and Gas operations’ and 183rd overall in Forbes Global 2000.

Business Activity of the Company

1. Exploration– Oil and Natural Gas Corporation Limited (ONGC) is a global energy holding company, engaged in the oil exploration, development, and production of crude oil and natural gas. Its segments include Exploration & Production (E&P), and Refining.

2. Drilling- ONGC operates some 105 drilling and 74 workover rigs. It is among the few companies in the world to have drilled 127 deepwater wells in diverse and challenging areas, establishing itself as one of the leading oil drilling companies in India.

Buy Back Offer Deal:

Buyback Type: Tender offer
Buyback Record Date: Jan 04 2019
Buyback Opening Date: Jan 29 2019
Buyback Closing Date: Feb 11 2019
Buyback Offer Amount: ₹ 4402 Cr
Date of Board Meeting approving the proposal: Dec 20 2018
Date of Public Announcement: Dec 20 2018
Buyback Offer Size: 1.97%
Buyback Number of Shares: 25,29,55,974
FV: 10
Buyback Price: ₹ 159 Per Equity Share

Details of Buyback:

Buyback of equity shares of the Company not exceeding 25,29,55,974 equity shares being 1.97% of the total paid-up equity shares of the Company at the price of 159 (Rupees one hundred and fifty-nine only) per equity share payable in cash for an aggregate consideration not exceeding 4022 Crore (Rupees four thousand and twenty-two crore only) which is 2.34% of the aggregate of the fully paid-up equity share capital and free reserves as per the latest audited standalone accounts of the Company for the financial year ended March 31, 2018 from all equity shareholders of the company, as on record date, on a proportionate basis through a "Tender Offer" route. Record date: 04.01.2019

How to Participate in buyback?

1. Firstly, to be eligible for the buyback the investor should have shares of ONGC LImited Buyback 2018 in demat or physical form as on the record date [04.01.2019]. 2. Once you have shares in demat, you can participate in the buyback process which is opening from [29.01.2019 to 11.02.2019] by selling your shares through your broker on NSE or BSE. 3. Then on [21.02.2019], 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 1257 Shares at CMP of Rs. 147 [2,00,000/159=1257)
Acceptance Ratio 33% 50% 75% 100%
Amount Invested in Buyback 1,84,905 1,84,905 1,84,905 1,84,905
No. of Shares buyback 414 628 942 1257
BuyBack Profit 4968 7536 11304 15084
Profit 3% 4% 6% 8%

Recommendation:

Review and Recommendation of ONGC Limited Buyback 2018 by IZ team is: 6/10 Fair: 1-5 Good:5-7 Excellent: 7-10 [Acceptance Ratio : 30-50%]

    Final Analysis of ONGC 2018 ( Return Analysis)

    1. Buyback Announcement date: 20.12.2018—– Share Price was 147.

    2. 1257 Shares bought at Rs. 147 means an investment of 1,84,905.

    3. Retail Acceptance Ratio was 100%. i.e. out of 1257 shares, 1257 shares have been buyback by the company. Profit on Accepted Shares= 15,084.

    4. The final Accepted Shares will be taken back on 21.02.2019.

    5. Overall we can say a profit of 15,084 on an investment of 1,84,905 in 2 months.

    Govt of India Announcement

    Aim ONGC_, @oilpr, BEL, To Buyback Shares Later This Month

    Expect ONGC Share Buyback Alone To Yield Rs 2,500 Cr

      Not possible. As per companies act, there should be atleast 12 months before a fresh buyback program

    Market wizard and vsk Sir, it is 100% sure that all share of retails will be accepted and from where 3.79 crores share reserved for retail you read. Please confirm the acceptance ratio.

    As per current figure from NSE, Looks like, for retail investors – 100% of the tendered shares will be accepted for buyback.. but have to wait and see on Feb 11 (last day of buyback).

    Tnank you very much should i send to company address or reg istrar to buy back os shares for ongc

    Is there anyway can we see how much ongc shares (percentage) subscribed as of now during buyback period (Jan 29 to Feb 11) ? i mean live update on buyback ?

    My broker is not registered with nse so I cannot particpate in buy back thogh i have 600 shares on record date. My broker is registered with only bse. So please advise how I can participate in ongc buy back

      You can fill form and send directly to company. Broker is not even involved in the process. Brokers only do this as courtesy to their clients. It’s fully within power of shareholder to directly do it with company.

      Hi wizard,

      Did you get the eligibility letter? I’ve not received the letter still. I was holding ONGC shares from many years but still I have not received any intimation. Can you guide me as to whom should I contact regarding this?

    Ongc…Buyback offer.opening on 29/01/2019 and closing on 11/02/2019

    Entitlement approx 26.5%

    is there any body applied for ongc buy back ? because didn’t see the buyback offer in my icici plateform.

      It has not opened yet. Once it is opened then it would be available.

    If AR is 50% according to IZ , only 4% will be profit(stock appreciation or depreciation neglected). How Can I Z give it 6 rating? Any one? No dividend also declare.

    ONGC just updates Exchange with its latest shareholding pattern. As per this report .. minimum acceptance ratio for retail shareholders on this forthcoming buyback will be 18%.

      22,88,34,041 are the no. of shares with face value consideration <2L.
      So actual holding would be much lesser.

    Please guide if anyone can….

    Lets suppose, I held ONGC shares on record date in demat account of XYZ broker. After few days I sold the shares.
    Then i bought it after few days the shares in demat account held with ABC broker( different from XYZ)..

    Please suggest if my shares will be accepted in buyback if I surrender through demat account held with ABC broker, inspite of I was holding shares with XYZ broker on the record date

      In my view, No problem if you same PAN in both the demat account. The company extracts the data of eligible shareholders for buyback from CDSL or NSDL. Brokers are the only link between You and depository.

      Entitlement Letter is directly linked with your Demat Account on Record Date. If due to some or any reason you say my Demat account is changed, I think you need to follow some procedure with RTA. You can check the same with RTA email stared on letter of offer

    Is it Ok to buy ONGC today for Buyback?
    According to T+2, shares should be in account by 4th i.e. record date.

    Please suggest.

      There is no special requirements for buying unlisted shares. You just need to have demat account for buying n selling unlisted shares.

      You can contact UnlistedZone.com for buying n selling unlisted shares. The most trusted site in India.

      As per market Pandits the buyback price wont be above 900. However, I think it is a very good way of returning money to the shareholders when company do not have big investment plan in near future.

      It should be a very good oppurtunity for Infosys Shareholders.

        If we consider buyback price is around 850.

        Current market price is 660.

        Retail invester will get huge benefit.
        What is your opinion Market Wizard ji.

          Yes Definitely. However, the way US stock market is falling is a cause of concern for indian IT stocks. Let us see how situation unfolds in coming week.

      If you want to be eligible for a buy back of ONGC. You need to buy shares of ONGC till 1st January. Because a share to be credited into ur Demat Account requires trading + 2 days.
      1st jan will be the trading day other two days 2nd and 3rd Jan. 4th is the record date

    Selan Exploration Technology Ltd Board to consider Interim Dividend & Buyback of Equity Shares – Dec 27th

    Any idea when buyback open date and when the amount will be credited after buyback ? approximately atleast?

      Yes. You can tender shares in buyback if you hold them in your demat account before the record date and not the date of announcement of the record date.

    Hi,
    I have a query.. If I buy the Share before the record date for Buyback and sell after few day and buy back again before the offer period. Will that work ? Do they track if we are offering the same share in buyback which we had before the record date.

    Last few times, I see the Share value goes down after the Record date, and not worth holding till the buyback starts.

    Thanks
    Ashish

    Individual Shares( As on 31.03.2018)

    0-500= 66688511
    501-1000= 40310999
    1000-2000= 33342884

    Total between 0 to 2000= ~ 14 Cr

    Entitlement based on this = 27%

    Individual share capital upto Rs. 2 Lacs = 21,66,79,520( As on 30.09.2018)
    Retail Quota = 3.79 Cr
    Entitlement = 16%

    All these buybacks by govt will severely impact the balance sheet of ONGC and IOC. The Govt is forcing the cash-rich companies to pay their fiscal deficit bills. As market condition are poor, disinvestment via IPO is not feasible for the company so they are resorting to buyback.

    Keep an eye on ONGC for buyback. ONGC’s buyback has not been confirmed as yet but is expected to be around Rs 4,800 crore in size as per moneycontrol.