Piramal Enterprises Limited Buyback 2023

Piramal Group is a global business conglomerate with diverse interests in pharma, financial services and real estate. The Group has offices in over 30 countries and a global brand presence in more than 100 markets, and operates with over 10,000 people worldwide from 21 diverse nationalities.

In over three decades of its existence, Piramal Group has pursued a twin strategy of both organic and inorganic growth. Driven by its core values, Piramal Group has strived for inclusive growth, while adhering to ethical and values-driven practices.

Piramal Enterprises Limited (PEL) is one of India’s leading diversified non-banking financial companies (NBFC) with assets worth ~$10 billion, with a network of over 400 branches across 26 states/Union Territories, offering a wide range of financial products and solutions across retail and wholesale lending, fund-based platforms and investments.

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Record Date: Aug 25 2023
Buyback Opening Date: Aug 31 2023
Buyback Closing Date: Sep 06 2023
Buyback Offer Amount: ₹ 1750 Cr
Date of Board Meeting approving the proposal: Jul 28 2023
Date of Public Announcement: Jul 28 2023
Buyback Offer Size: 5.87%
Buyback Number of Shares: 1,40,00,000
Price Type: Tender Offer
FV: 2
Buyback Price: ₹ 1250 Per Equity Share

Details of Buyback:

The proposal to buyback not exceeding 1,40,00,000 (One Crore Forty Lakh) equity shares of the Company (representing 5.87% of the total number of equity shares in the paid-up share capital of the Company) at a price of Rs. 1250/- (Rupees One Thousand Two Hundred Fifty Only) per equity share payable in cash for an aggregate consideration not exceeding Rs. 1,750,00,00,000 (Rupees One Thousand Seven Hundred and Fifty Crores Only)

Salient financial parameters:

Particulars (In Cr) Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022
Revenue 10,631 11,883 13,068 12,809 7,726
Interest 2,978 4,100 5,321 4,209 4,225
Expenses + 5,471 5,264 6,801 5,338 1,984
Financing Profit 2,182 2,519 947 3,263 1,516
Financing Margin % 21% 21% 7% 25% 20%
Other Income + 260 198 1,555 754 963
Depreciation 477 401 520 561 74
Profit before tax 1,964 2,316 1,982 3,456 2,405
Tax % -146% 37% 99% 59% 17%
Net Profit + 5,120 1,464 21 1,413 1,999
EPS in Rs 250.81 70.26 1.07 59.08 80.57
Dividend Payout % 9% 35% 1314% 56% 41%

How to Participate in buyback?

1. Firstly, to be eligible for the buyback the investor should have shares of Piramal Enterprises Limited in Demat or physical form as on the record date [25.08.2023]. 2. Once you have shares in Demat, you can participate in the buyback process which is opening from [31.08.2023] by selling your shares through your broker on NSE or BSE. 3. Then on [06.09.2023], 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 160 Shares at CPM of Rs. 1,073(2,00,000/1,250)
Acceptance Ratio 33% 50% 75% 100%
Amount Invested in Buyback 1,71,680 1,71,680 1,71,680 1,71,680
No. of Shares Buyback 53 80 120 160
Buyback Profit 9,381 14,160 21,240 28,320
Profit% 5.46% 8.24% 12.37% 16.50%


    Have you received funds in your bank account for the accepted shares??? Because today is the settlement day

    Market has fallen and PEL acceptance ratio is far below the expectation. It appears in short term i.e. this week the stock may reman in pressure, specifically as most of the retailers who have specifically bought for Buyback would take exit. For mid term the stock may go below 1020 in adverse condition or market fall. But if you want to keep for long term, hold it convincingly, it would surpass the returns of index.

      What is the acceptance ration Sumit ji. I am holding 80 shares. When will be unaccepted shares credited to my account

      Sumit ji,
      Thank you very much for your kind views with analytical reasoning.

    Got the debit message today for shares in the morning from cdsl. When can we expect the unaccepted shares to be credited back. As the share price has fallen a bit would experts recommend holding the unaccepted shares or sell them after the credit.

    Did any one received any communication from Zerodha for Buyback? I have no information nor demat credit nor fund credit from Zerodha!

      Me neither..Not sure how so many people got the message of accepted shares. I haven’t got any cdsl debit message or email. Neither Zerodha nor cdsl nor Linkin time confirming that…What am I missing here?

        Please don’t worry about shares being not credited back. It is only a matter of time. Will most probably be in the respective portfolios tomorrow,if not today. Anxiety is warranted only if not credited even tomorrow.

    I have only 1 share in Demat Account. I received mail informing not entitled for buyback. Even though I applied for buyback and my share is not bought back. When buyback size is large (5.87%), why my share is not entitled for buyback? Experts please guide..


      Can u tell me one thing, I had 50 shares in my demat, I applied 25 for buyback. So if AR is 40%, does it mean 40% of my whole holding that is 20 shares, or 40% of applied shares only. That is 40% of 25 = 10

      AR counts on applied shares.
      Assuming 40% AR
      Your holding 50 shares. And u apply 25 shares thn
      25 – 7 = 18 shares extra applied other thn ER. So 18 × 25% = 4
      So 7+4 = 11 accepted from 25 applied

    As per my calculation and assuming subscription on proportion basis AR may remain close to 46%

    Sumit ji,

    I take this opportunity of “ Teacher’s Day “ to express my hearty congratulations n thanks for your kindness in making valuable contributions through your humble, hardworking, critically analysed, well knowledged, experienced n priceless views. I admire your service oriented approach in sharing without any hesitation what you have learnt. Pranaamams to your broad mindedness in continuing your selfless service. Hats off to you. We are all fortunate to have you n are indebted to you. Your will power cannot be overtaken by any evil. That’s your own character. God blesses you all with good health, wealth n happiness always. Thank you once again. Love you.

      I whole heartedly endorse the views,opinions and comments made by SRK Ji.I am also appreciating SRK JI for expressing his gratitude which is very rare in modern times. Missing Rohit Ji now a days. I hope he will return to the zone soon

        Thanks so much for rembering me. Just being busy with the work these days. Also, I have recevied advise from couple of SEBI expert, if someone give the advice without monetary benefits it will not come into the ambit of SEBI IA Rules. So, I will start giving my views again from tomorrow. Will try to make a 30 minute slot in my day to respond to the queries of the members. Thanks

          I like to thank all the members of the forum and special thanks to Umesh for making this portal 🙂

          Thank you for the information/ clarification and your prompt reappearance Rohit Ji.

      SRK ji,
      I am extremely honored by your kind words. I humbly appreciate your kindness and doesn’t feel myself so much able.
      I also consider your views and will to help the board members whole heartedly as highly commendable.
      May also God bless you and other board members.
      Again, thank you.

    Current Subscription level of Buyback suggesting high AR, of the order of 60-70%. Still 2 days are there, lets see on 6th evening. Share performing appreciably at the moment, although not able to break 1100.
    At 6-7 PE it is one of the cheapest share.
    Experts any advice?

      Yes looking good lets see last day. As zerodha place orders on last day 6th September.

      Order received percentage of total retail holders

      Indiamart – 32%
      Piramal – 22%
      Krbl – 26%

      Sumit ji
      Now trading at RS.1116/-. That’s why we admire your valuable contributions. Please keep posting your kind views to help the readers like me. Thank you once again. God blesses you with all the best.

    Got a corrigendum email from PEL – the first time I’ve seen for any buyback. Now entitled to 36/372 shares (earlier was 19). Is it due to taking into taking into account the fact that promotors aren’t participating, or something else?

    All Eligible Shareholders holding not more than 188 (One Hundred and Eighty Eight) Equity Shares as on the Record Date are classified as ‘Small Shareholders’ for the purpose of the Buyback.

      It should be considered retail. You can the email for the ER. From that you will know which category you were considering.

    I have PEL shares as on Record date in below 3 accounts.
    1. 183 shares
    2. 173 shares
    3. 173 shares
    Which of them will fall under Retail category for buyback?

    I have 379 shares of PEL and my entitlement is 20 shares. What is the likely acceptance ratio? Should I continue to hold or exit. My average purchase price is 728. Please advise

      Though I am not an expert, I wish to share what I understand. Please tender all the shares held on the Record Date to get the maximum benefit.

        It should be considered retail. You can the email for the ER. From that you will know which category you were considering.

    I didn’t get any mail of buyback, ( Applied in zerodha and angel broking)

    I did sold the shares on record date

      I got entitlement about 19 shares against 128 shares held on record date

      My doubt is if I tender only for 19 shares , will company accept 19 shares? Or less than that?

        I suggest you to tender all the shares held on the Record Date as acceptance ratio will be higher than the entitlement ratio or even in worst case, equal to the entitlement ratio. All the best.

          Suppose I sold my shares on record date. I was holding 140 shares on record date and 20 shares are shown as entitled. If acceptance ratio comes out to be 30% then will I need to buy 140 shares again and then tender all 140 or buying 52 shares and then tendering it will also work?

            Yes, any number upto the number of shares held on the record date may be considered for buyback.

            Entitlement Ratio depends on the number of shares held on the Record Date whereas Acceptance Ratio depends on the number of shares held on the Record Date and submitted for the Buyback. Unlike ER, AR will be known only after tendering of the shares for the Buyback. So the question of buying and tendering of shares after knowing the Acceptance Ratio doesn’t arise. I hope that this helps in understanding what is ER and the AR.

              My question is suppose after buyback the acceptance ratio comes out to be 50% and I only tendered 70 shares before buyback closed date then

              1. 50% of 70 shares will be considered only for buyback or
              2.the number of shares I held on record date i.e 50% of 140 shares = 70 and since I also tendered 70 hence 70 will be accepted?

              Number 1

              If u apply half of your holding thn acceptance will be on applied shares. 50% of 70 shares as u said 70 apply.

    Can anybody provide the link where I can see the offer letter. In link intime they show only blank pages

    Any particular reason for this Fire in PEL after ex date? something is cooking inside.

    Holding less than 188 Shares will come in Reserve Category.

    Relife for those who have holding between 180-188 Shares.

    HOS- Forwarded Message

    *PEL Buyback: Important*

    If anyone has purchased 180 shares for buyback, and if today’s closing price is above 1111.11, then the value of shares will be more than 2 lac, hence, will not be eligible for Retail Quota Buyback.

    The only option available is to transfer shares from DP through Off Market, by DIS or Online.

      Fire of PEL price is get extinguished and now trading at 1057 again. Great relief

    If someone is going Full force in PEL, please be cautious about the number of stocks you own today because you might fall in the General category. Since the stock price is increasing, the record day price will be considered today for the small shareholding category (total amount< 2Lakhs). This case will be valid, assuming small retailers have good ER and AR.

        Yes Mohsin Ji. For those who went FF yesterday there might be a category change depending on how the stock closes by the end of the day.

    Is there any timeline for completion of buyback post record date? respected members kindly guide.

      Hi, I have PEL in Zerodha. How I can apply for Buyback?
      In console /portfolio corporate action, I cannot see PEL. But tomorrow is Ex data for PEL

        Please wait for the period of tender placing by the portal which may be after a week or so. Piramal Enterprises will be fixing the dates. You will get email notification from Piramal Enterprises mentioning your ER ER soon.

            Zerodha portal may start accepting tender from 30/8/23,ie, tomorrow onwards. You may place the order tomorrow itself,Sagun Ji


      Record date = T

      Open Date = T+5

      Close Date = T+9

      T+14= Accepted shares ka paisa wapis…..

      Record date announce hone ke baad 14-15 din main mamla khatam karna hai

        Thank you Umesh ji for your experienced, excellent and exceptional information sharing. You seem to be a full timer in the field. Hope you are making very good returns too. Good luck to you.

        Very kind of you. Please continue to share the helpful information as being available to you. I pray God to bless you with all the best. Thank you very much once again.

    If we having only one share on record date for eligibility purpose

    Then while tendering, can we apply more than ER or equal to ER?

    In this case what should be creteria of Acceptance

    Will this trick work

      19.10. For avoidance of doubt, it is clarified that

      al the Equity Shares accepted under the Buyback from each Eligible Seller, in accordance with clauses above, shall not exceed the number of Equity Shares tendered by the respective Eligible Seller,
      b) the Equity Shares accepted under the Buyback from each Eligible Seller, in accordance with clauses above. shall not exceed the number of Equity Shares held by respective Eligible Seller as on the Record Date;
      and the Equity Shares tendered by any Eligible Seller over and above the number of Equity Shares held by such
      Eligible Seller as on the Record Date shall not be considered for the purpose of Acceptance in accordance

      with the clauses above.

      You can tender only one share or the number of shares you have held on the record date.

    Promoter is not participating here.
    Will it increase AR in retail or not?
    As promoter comes in general catagory so it will only benifit general catagory or retail would get also benifit?

      AR in retails will not increase as already 15% is reserve quota for retail. hence it will beneficial only for General Category.

      But Promotor is bullish in this stock hence price may go beyond the buyback price in near future.

      Board may increase buyback price and reduce the buyback qty.

    Hi , Anyone please tell me the Probable ER and AR of this Buyback?

    I’m holding around 7 lakh shares in different individual demat account.

      7 lakhs amount rupees Holding ? or number of 7 lakhs shares ( 7,00,000 × 1060 = 74.2cr ) ?

        I think ER will be as follows: –
        Retail – 7.25%
        General – 11.25%

            Yes, my mistake. At the time of copy pasting the values for ER from my working sheet, I used the values of shares from the last shareholding disclosure not from annual report. As per the last annual report i.e. 31 March 23, the ER will be as follows: –
            Retail – 26%
            General – 9.4%
            Offcourse the ER of the retail will be lower that the above mentioned as it was based on 31 March 2023 shareholding pattern available in the annual report.
            Apologies if someone did any trade on the basis of my wrong ER. Sorry again.

    Can I sell my shares after the record date of buyback and re-buy again from the open market after the tender form is issued by the company, and tender for buyback? Will this scenario is considered?

        Will it work under every brokerage? Can anyone give me some clarity about when I could sell and buy again without messing it up? Thanks in advance guys.

    Piramal doing good… May be 182-185 nos would qualify for the small share holder category… selling off the higher qty with each increase..
    What does experts say?

      Yes, I think so. As we have a lot of buybacks so my ranking is as follows: –
      1) KRBL
      2) SIYSIL (long record date) & IndiaMART (little bit of risk due to one share strategy which may reduce AR)
      3) PEL (move to 3 position due to today’s price change previously it was on 2)
      4) FDC
      I have exhausted all of my available funds. Have sold Ashiana today (at a 5% net profit) so funds will be available tomorrow for purchase.

        Hello Rohit.
        As I heard promoter is not participating here so what is expected final AR can we expect in this buyback?

        I am enjoying the Instant credit of 75% of the sale proceeds in most of the cases within 5 minutes at ICICI DIRECT. Everyone knows the advantage of this.

      Just reviewed the chart for you and I think this positive move will not stay as the volume is not good. I suggest you offload extra shares after keeping 200 shares. A couple of negative things like the negative results as well as Jefferies downgrade to Underperform from buy and reduce price target to 920 from 1025.

      What you have stated qualify as the best expert’s comments. Class and quality are brimming all over it. Aur kya chahiye!😄

        Sumit ji,

        Thank you very much for your kind information. Please continue to help the readers by sharing your kind views on this buyback.

    As promoters are not participating.
    For general category, as per my calculation ER is 11%
    So expected AR should be around 25-30% ?

    Is this correct? Please advise.

    FDC Will consider buyback on 9th Aug. Last year buyback AR was around 11% and buyback price was 475

      Is it advisable to go to pel buyback.
      What will be approx ER n AR for retail category?

    Is it worth buying at 993 level for the buyback..? planning to buy 100 shares..

    Since promoter is not participating, what will be the retail quota i.e 15 % or more?

      Promoter not participating has no impact on retail.
      It only affects the general quota

        Promoter bounded shares will go to which category?
        What will be the approx ER n AR

    Total No of Shares to be Bought Back: 1,40,00,000 shares out of total 23,86,63,700 shares at a price of
    Rs.1250/share, implying an overall 5.87% shares approx. However, as the Company’s promoter and promoter group
    have expressed their intention not to participate in the Buyback, the total no. of shares excluding promoter and promoter
    group is 13,48,83,007, implying an overall 10.38% shares approx.
    • Out of which 15% is reserved (15% of 1,40,00,000; 21,00,000 shares) for small shareholders holding less than worth
    ₹2 Lac share as on 25 August 2023 being record date. As per shareholding data of annual report 2023,
    individual investors qualifying above criteria held approximately 78,64,173 shares, implying an acceptance ratio of
    around 26.7% for retail investors.
    • Thus, the overall acceptance ratio for re

    If promoters are not participating then the AR in general category should be above 50% ?

      Cant say this sure. Last year i participated in birla soft buyback general category after seeing tht promotors not participating. Thn happened wrong. ER for both category came same 4.61%.but acceptance ratio in general came 8.6% and Retail 19-20%.

      Since buyback size is 5.87..
      Promoter holding 43+.. So only Max 57% shares can be tendered maximum..
      It’s have huge FPI holding.. We expect less participation from them than us..
      Means entitlement ratio around 10%..
      I expect ER around 20% for retail and 7% for general ..
      AR will be 40 and 15 for retail and general category..

        Sir, as per my calculation ER for general category is 11%
        So expected AR should be around 25-30% ?

    Buyback Size :- 1,40,00,000 Shares
    Buyback Price:- 1250 per Share ( Price may be increase before 1 working day of Record Date)

    Through tender route
    Record Date :- 25 Aug 23

    Note:- Promotor is not participating hence retail portion will be 15% or propertinate basis whichever is higher

      Thank you for the details
      Looking good to participate.

      Up to 5.87% of the paid up Equity Shares of the Company. A good indication that the AR will be a reasonably good one and investors will not be disappointed.

      Details are out. Tender offer…1750 crore… promoters are not participating

        Sir if you cam please explain effects on retail AR particularly when promotos are not part participating in buyback and when participating in buyback.

        Thank you for the update and nice to hear from you . Bought few today @ 1065/. Good luck to all.

          Me too on 1065 but I gonna sold them … if price looks attractive i will buy again … it’s a month to record date

    In market Rumours A Suprise BUYBACK it will be .
    I mean BB price and Overall buyback amount is greater than expected.
    Need thoughts from experience bro’s

      Buyback price is 1900-2000 in a Rumours talking on a social platform

        Buyback price is 1900-2000 in a Rumours talking on a social platform and with that they anticipated a big spike near today closing.
        Sorry for a demerit comment post

    Update on the outcome of the Board meeting is awaited. Those who have knowledge before close of trading hours today may kindly share .

    Have bought shares of Indian Mart, Aarti and L& T on the day of the board meeting. Exited the next day with profit. Does this strategy works in majority of BuyBack cases ? Little skeptical of Piramal so asking the veterans.

    This company has lot of debt.
    Does sebi allow companies with debt to do buyback?

      It’s a NBFC the business of which is lending and borrowing. Bound to have lots of debt. Please try to not to worry about this.

        Thank you for this reply.
        I had overlooked that it was NBFC.

        I entered it after you pointed this out. Thnx

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