Granules India- Buyback Case study ?

Part 3

Let us assume for this part that the date today is 26th June, 2020.

On 1st June  2020, the whole timeline till the date of extinguishment of equity shares have been intimated by company through letter of offer.

Within the letter of offer, we get to know the actual shareholding as on record date ie. 20th March 2020, we used  Dec 2019 shareholding in the above calculation as that was available on 10th march 2020. 

In our case Acceptance ratio for General shareholders = 3/67 = 4.47%

In our case Acceptance ratio for Small shareholders = 1/9 = 11.11%

Actual Tendering Status

Today, through post buyback public announcement , we come to know about the tendering status. Under Small Shareholder 0.55% have tendered their shares and Under General shareholder  3.41% have tendered. It means those who tendered their all share have got accepted at 200 per share. 


 Under both categories acceptance is 100, all shares have accepted which had tendered. It means, 43 percent pre tax return in span of 3 months under both category. But we have squared 50 position at 21% pre tax profit and rest we have fetched 43 % pre tax profit in net we able to capture 32% pre tax return in period of 3 months. However you may have a different viewpoint and we would love to know the some.

May we all learn together

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s