Step by Step Buyback Process

1. Public Announcement of the Buyback

The company makes an announcement to the public regarding the intention of the Board to bring buyback. The following information supplied to the public during this.

 

No. of Shares for buyback

Price at which buyback will be done

Type of buyback(  Tender or Open Market Offer)

Offer Size

What does IZ Team do after the Public Announcement?

A. Update the information on the same day to the website for our users because if the buyback price and size are lucrative, we see definite positive price action in the market very next day.

BCalculate and report approximate Acceptance Ratio, Profit Possibility, Company’s Financial Position, Valuation of the company, and Company’s Business information. We too have a dedicated 24/7 comments sections to clear any query regarding the same.

2.Draft Offer Letter

Usually after 7-30 days( vary company to company) the company present to the public via stock exchanges the “Draft Offer Letter”. The following important information supplied to the public during this event.

Record date of Buyback

Detail of the Buyback

The necessity of the Buyback

Management Analysis on the impact on the company after the buyback

Source of the fund for buyback

What IZ Team do after “ Draft of Letter “ Announcement?

We quickly update the information on our website regarding the announcement of Record Date. The Record date is the most important date as far as buyback is concerned. The Shareholders will be eligible to tender their shares in the buyback only if their name is available in the register of the company on the record date. So as we all know that in India we receive shares after T+2 days, therefore the shareholders should buy shares 2 working days before Record date to be eligible for buyback.

3. Letter of Offer

Then within one month’s time, the company announces “ Letter of Offer ” containing following additional information apart from “ Draft Letter of Offer” .

Entitlement Ratio for Retail and General category

Date of Opening and Closing of Buyback

Last date of settlement of bids

What IZ Team do after “Letter of Offer” Announcement?

We again quickly update our website the dates of opening and closing of the buyback so that our users don’t miss any such important dates. The company also announces  “Entitlement Ratio” which is the minimum number of shares per 100 the company will buy back from shareholders.

4. Post Buyback Announcement

The Company announces the actual number of Shares Company has buy backed. The actual acceptance ratio comes in the public domain.

What IZ Team do Post Buyback Announcement?

We quickly update the link of this announcement of our users so that they can come to know the exact Acceptance Ratio in the buyback. This figure helps during next buyback. We do post buyback analysis for determining the gain a shareholder has made in the buyback to come to the conclusion the usefulness of the buyback in creating that extra income which we all want.