about 25 per cent of the shares tendered by retail investors is likely to be accepted during the buyback. price to book value is now 0.79. at buyback price it will be around 1. dividend yield is also 3 per cent at present. peers are trading at far higher price to book valuations.
IMHO the risk is that the stock could rise quickly after the buyback offer concludes and investors who want to do a trade may not be able to get back into the stock after the proceeds of buyback are credited to their accounts. One option would be to buy 60-70 per cent of the quantity tendered for the buyback immediately after the record date.
the latest concall has given me some confidence that the company will do well in the coming quarters and the Piramals are using the buyback to increase their stake in the company.
In the medium term, the Piramals may even sell out to Reliance.
dis: holding. still undecided on whether to participate in the buyback.
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