As per June share holding pattern, small share holders hold 29,090,762 shares and with 15% reservation for them, 21 lac shares may be bought from them which gives a minimum acceptance ratio of 7.22%. From my past experience with the buyback of Hinduja global and Wipro, I expect the acceptance ratio to be upwards of 20%. Promoters not participating is not going to help the small share holders. It will help the non-promoter share holders holding shares valued more than Rs 2 lacs. As per my understandin, only if this category of investors tender less than 85% of the total buyback shares (85% of 14 lac shares), it will get allocated to the small share holders.
Disc: Invested around 750 level as it was trading 0.6 times book. Post buyback announcement, have bought more in multiple accounts to take advantage of potential arbitrage in the buyback.
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