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Greaves Cotton Ltd Buyback 2019 Review

Rated 3/5 by Team InvestorGain

Incorporated in 1959, Greaves Cotton Ltd is a diversified engineering company that's a number one manufacturer and merchandiser of diesel engines, fuel engines, generator sets, pump sets, and construction instrumentation. The corporate is founded by James Greaves and St. George Cotton. Since then, the corporate entered into varied tie-ups and joint-ventures with Indian and international corporations to provide ceiling fans, diesel engines, industrial and marine gearboxes, carbide crucibles, vibrating compactors, concreting instrumentation, transit mixer and batching plant, lightweight engines, 3-wheeler petrol/CNG/BSVl compliant engine, etc.

This is the second buyback of Greaves Cotton, the last buyback was performed in 2004. The corporate has split his share in 2010, within the ration of one to five and therefore the current face price is Rs 2. After that, there was no major event happened for the Investors.

What is Greaves Cotton Ltd buyback offer?

Greaves Cotton Buyback 2019 Latest Update

May 2nd, 2019:Greaves Cotton Ltd (BSE:501455 | NSE:GREAVESCOT) board has approved a proposal for purchase of up to 1.37 Cr(one hundred and thirty seven crore) shares at Rs 175 (one hundred seventy five) per share, aggregating Rs 240 Cr(two hundred and forty crore) (Buyback Offer Size) that is 5.6% of total paid equity share capital.

What is Greaves Cotton Ltd Buyback details?

Below is the complete details about Greaves Cotton Ltd Buyback. Record date, buyback open and close dates are announce in below section.

Buyback Type: Tender Offer
Buyback Offer Amount: Rs 240 Cr
Buyback Number of Shares: 1.37 Cr
Buyback Price: Rs 175
Buyback Offer Size (In %): 5.6%
Total Share Capital: Rs 3624.03 Cr
Face Value: 2 Per Equity Share

Can I Invest today to participate in Greaves Cotton Ltd buyback offer? No

Review & Recommendation

We advocate honest for Greaves Cotton buyback as acceptance ratio for the retail investors are going to be between ten to thirty percent (10-30%). We tend to rate Greaves Cotton buyback as 3/5 (Fair). Allow us to make a case for you why we predict this buyback isn't sensible for new retail investors -

  1. Profit per share if you purchase @150, will be thirteen percent (13%).
  2. Total retail holding is approx twenty percent (20%), therefore 700 Cr values of shares under the holding of retail investors. For retail class purchase fund going to be 15% of 240 that is 36 Cr (Thirty-six Crore). With the above calculation, the acceptance ratio is going to be between five to ten percent (5-10%) and actual acceptance ratio is will be between ten to twenty percent (10-20%).

Making a large profit isn't doable in Greaves Cotton purchase for a brand new capitalist, AN existing capitalist will exit in purchase and book profit.

Rating

Poor (<10% AR),Fair (Bw 11 to 30% AR), Average (Bw 30 to 60% AR, Good (Bw 60 to 90% AR),Excellent (>90% AR)

What are Greaves Cotton Ltd Buyback Important Dates?

In this section we have covered all important dates related to Greaves Cotton Ltd Buyback. Dates are updated as they are announced. The most noted dates are record date and buyback open and close dates, which one should use to participate in buyback.

Greaves Cotton Ltd buyback offer important dates
Buyback Activity Date
Board Meeting for Buyback proposal 2nd May 2019
Buyback Approval date 2nd May 2019
Public Announcement of Buyback 2nd May 2019
Record Date 12th Jul 2019
Buyback opens on/Buyback Opening Date 18th Oct 2019
Buyback closes on/Buyback Closing Date 1st Nov 2019
Cut-off date to receive completed tender forms by Registrar 4th Nov 2019
Cut-off date for verification by the Registrar 11th Nov 2019
Cut-off date to inform Stock Exchange on acceptance or non-acceptance
of tendered Equity Shares by Registrar
11th Nov 2019
Last date of settlement of bids on the stock exchange 13th Nov 2019
Last date to return unaccepted shares by Registrar 13th Nov 2019
Last date of extinguishment of Equity Shares 20th Nov 2019

Greaves Cotton Ltd Share Holding Pattern as of Mar 2019

Stock Holding table gives a clear picture on retail investor holdings of Greaves Cotton Ltd shares which helps investor to decide on participating in buyback offer. The less number of retail holdings means higher chance of acceptance in buyback under retail category which is equal to higher profit.

Holding Type In %
Promoter-Foreign 0.0%
Promoter-Indian 51.09%
Non-Promoter-Institutions 29.64
Non-Promoter-Non-Institutions 18.46

Greaves Cotton Ltd Letter of Offer >>Document

Greaves Cotton Ltd Ratio of Buyback

    For Buy back shares holders are divided in 2 categories:
  • Reserved category for Small Shareholders ("Reserved Category") - Who holds Max Rs 2 Lakhs worth of shares @Rs 130.45 per equity share - in such case Max 1533 Equity Shares as of Record Date 12th Jul 2019.
  • General category for all Shareholders other than Small Shareholders ("General Category")

Greaves Cotton Ltd Ratio of Buy Back

Category Entitlement Ratio of Buyback Per Equity Shares Entitlement Ratio of Buyback in %
Reserved Category 5 Equity Share out of every 41 fully paid-up Equity Share held on the Record Date. 12.20
General Category 26 Equity Share out of every 537 fully paid-up Equity Share held on the Record Date. 4.84%

Post buyback comments Greaves Cotton Ltd

For Greaves Cotton Ltd Buyback Offer, Report updated by the manager of buyback -

In general category - response received 319.97%, No. of Equity Shares reserved in Buyback was 11050000 where valid bid received for retail category was 35356460 which is 319.97% oversubscribed.

In Reserved category for Small Shareholders (Retail) - response received only 260.11%, No. of Equity Shares reserved in Buyback was 1950000 where valid bid received for retail category was 5072203 which is 260.11%. Final Acceptance Ratio for Retail Investors was 12.20%.

Current and Upcoming Buybacks Key dates

The table below will give you a complete dashboard view for all open buyback offer in current market.

Current and Upcoming Buybacks Key dates
Company NameBuyback TypeOffer AmountBuyback PriceCMPRecord DateBuyback Open DateBuyback End Date
Tanla Platforms LtdTender OfferRs 170 Cr1200844.55 (-1.33%)25-10-2022TBDTBD
Garware Technical Fibres LtdTender OfferRs 90 Cr37504-11-2022TBDTBD
Orbit Exports LimitedTender OfferRs 10 Cr245151.90 (-0.07%)18-11-2022TBDTBD
KRBL LimitedTender Offer₹325.00Cr500289.75 (0.77%)25-08-2023TBDTBD
Shervani Industrial Syndicate LimitedTender Offer₹6.83Cr510543.60 (1.91%)07-03-202414-03-202420-03-2024
Dwarikesh Sugar Industries LimitedTender Offer₹31.50Cr10580.37 (0.19%)20-03-2024TBDTBD
Garware Technical Fibres LimitedTender Offer₹199.50Cr38003201.80 (-1.15%)26-03-2024TBDTBD

Detail Article on Benefit from buyback offer >> Read

Greaves Cotton Ltd Buyback Important dates - Record Date,Buyback Start and End date. Buyback Details - Buyback Price, Buyback Offer Size, Buyback Number of Shares, Retail Investors limit. What is the record date for Greaves Cotton Ltd? How can I apply in Greaves Cotton Ltd Buyback offer?

Company Contact Information

Greaves Cotton Limited Unit No.
701, 7th Floor,
Tower 3 Equinox Business Park,
LBS Marg,
Kurla West, Mumbai - 400070

Registrar Contact Information

Last Updated on 2019-11-15T21:37:58+00:00

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User Reviews

1. Vineet May 03 2019 06:47:59 AM Reply
Good company and strong trade record. I personally feel that one should hold this script. The price will go above 170 in 6 months.