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Buybacks - a very small rewarding opportunity

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amitalpha

amitalpha

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Generally, there are buybacks by the companies that are listed in the stock market and they often are able to provide you with an easy gain of Rs. 100-300 per share. But but there are many conditions attached such as acceptance ratio, ex-date, etc. Sometimes if a good buyback comes it can even fetch you 500-1000 on a single share.

If there are positive reactions to this post, I can research and write a detailed post or edit this one after some time.

To name one example, I purchase a share of Symphony on 28th March for Rs. 1079 as its record date was 29 March. The offer was for 2000 per share opened on May 3 and here I easily earned somewhere around 800-900 after taking out your cost, commissions/charges of brokers.
 
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Good! Congratulations
It's a good idea too - buybacks are indeed low hanging fruits in the stockmarket.

Looking forward to more research! All the best

Here's my 2 cent :
Most companies do accept 1 share tendered to buyback, even if the official acceptance may be 0
 
saucy said:
Good! Congratulations
It's a good idea too - buybacks are indeed low hanging fruits in the stockmarket.

Looking forward to more research! All the best

Here's my 2 cent :
Most companies do accept 1 share tendered to buyback, even if the official acceptance may be 0
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Agreed! So far I have seen this way to be the safest way to earn something from the stock market although it does take some time and earnings are low but also are without any much investment
 
Suppose company X announces on July 01st that they will have buybacks by July 15th and will buy back on 25% premium cost. Won't they have a cut off date that the shareholder needs to have held the shares by say June 10th, i.e. since minimum last 20 days to be eligible.

How do we get to know about the buybacks to purchase in advance & be eligible?
 
wolfdalalstreet said:
Suppose company X announces on July 01st that they will have buybacks by July 15th and will buy back on 25% premium cost. Won't they have a cut off date that the shareholder needs to have held the shares by say June 10th, i.e. since minimum last 20 days to be eligible.

How do we get to know about the buybacks to purchase in advance & be eligible?
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The ex-date to buy will always be after announcement.
 
Generally there are board meeting before a buyback is officially announced and those information does eventually gets out , for example there are rumors of TCS may announce another buyback . You usually have some time as long as you have brought the stock before record date it is eligibile
 
wolfdalalstreet said:
Suppose company X announces on July 01st that they will have buybacks by July 15th and will buy back on 25% premium cost. Won't they have a cut off date that the shareholder needs to have held the shares by say June 10th, i.e. since minimum last 20 days to be eligible.

How do we get to know about the buybacks to purchase in advance & be eligible?
Click to expand...
You can also refer to sites like Chittorgarh , where in they keep a list of upcoming buybacks
 
wolfdalalstreet said:
Suppose company X announces on July 01st that they will have buybacks by July 15th and will buy back on 25% premium cost. Won't they have a cut off date that the shareholder needs to have held the shares by say June 10th, i.e. since minimum last 20 days to be eligible.

How do we get to know about the buybacks to purchase in advance & be eligible?
Click to expand...
The official record dates are announced along with the buyback date.

You'll also find the "ex-date" mentioned, which is usually one day before the record date - this is the final day when if you buy the share, you will.be eligible for the buyback offer.

Buyback can proceed anytime later - way later as well. You don't need to stay invested in the stock

As long as you've held the shares on the ex-date, you are eligible. Based on that eligibility, you will be intimated how many shares you can offer.

when the buyback begins - you can simply buy the shares again and offer them to the buyback. 🤓
 
amitalpha said:
Generally, there are buybacks by the companies that are listed in the stock market and they often are able to provide you with an easy gain of Rs. 100-300 per share. But but there are many conditions attached such as acceptance ratio, ex-date, etc. Sometimes if a good buyback comes it can even fetch you 500-1000 on a single share.
Click to expand...
Yes true, but if your goal is long term investing you're better off keeping the shares with you, as the company management think the CMP is lower than their intrinsic value and hence they do buybacks (also when they have more cash than deployable)
 
amitalpha said:
To name one example, I purchase a share of Symphony on 28th March for Rs. 1079 as its record date was 29 March. The offer was for 2000 per share opened on May 3 and here I easily earned somewhere around 800-900 after taking out your cost, commissions/charges of brokers.
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this looks like a one-off case, generally for large-caps the buyback price is much much closer to the CMP, but still there good margin for profit
then again reiterating the fact that, if a management is doing buybacks, they have more cash or they know for a fact that the share price is going to go up even more in the future
 
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