Greaves Cotton Ltd Buyback 2019 Review

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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.

Greaves Cotton Ltd Buyback Offer Details

      »»   Total Share Capital: Rs 3624.03 Cr
      »»   Face Value: 2 Per Equity Share
      »»   Buyback Offer Amount: Rs 240 Cr
      »»   Buyback Offer Size (In %): 5.6%
      »»   Buyback Number of Shares: 1.37 Cr
      »»   Buyback Price: Rs 175
      »»   Promoters and Promoter Group participation:Yes
      »»   Buyback type:Tender Offer
      »»   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)

Greaves Cotton Ltd Buyback Important Dates

In this section we have covered all imporatant 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 will give you a clear picture, how many retail investor holding Greaves Cotton Ltd shares, with this you can plan for participate in buyback offer. The less number of retail holding make more chance to get higher acceptance ratio in buyback under ratail category = 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%

Buyback Calculator - Check your Profit/Loss and Breakeven point for left out shares.

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
KPR MillTender OfferRs 263.3 Cr702558.60 (0.49%)19-06-2017TBDTBD
Sasken Technologies LtdTender OfferRs 169.88 Cr850596.90 (-1.27%)05-07-201911-10-201924-10-2019
Welspun Corp LimitedTender OfferRs 360 Cr140131.10 (1.71%)05-07-201922-10-20195-11-2019
Star Cement LimitedTender OfferRs 102 Cr15093.40 (2.36%)05-07-201922-10-201905-11-2019
Greaves Cotton LtdTender OfferRs 240 Cr175128.10 (-3.50%)12-07-201918-10-201901-11-2019
Eris Lifesciences Limited Tender OfferRs 100 Cr575421.90 (-2.05%)15-07-2019TBDTBD
Smartlink Holdings Ltd Tender OfferRs 47.45 Cr13082.35 (-4.41%)13-08-201918-10-201901-11-2019
Automobile Corporation of GoaTender OfferRs 19.98 Cr600515.00 (-1.52%)20-09-201918-10-20194-11-2019
NIIT LtdTender OfferRs 335 Cr12584.95 (-2.36%)18-10-2019TBDTBD
Kaveri Seed Company LtdTender OfferRs 196 Cr700465.70 (0.03%)TBDTBDTBD
Indiabulls Real Estate LimitedTender OfferRs 500 Cr10044.50 (-2.31%)TBDTBDTBD
Indiabulls Ventures LimitedTender OfferRs 1000 Cr15090.30 (-9.97%)TBDTBDTBD

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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

Request call back from

Last Updated on 2019-10-15T02:52:23+00:00

FAQs

  1. What is the record date for Greaves Cotton Ltd buyback offer?

    The Record Date for Greaves Cotton Ltd Buyback offer is 12th Jul 2019

    Which means you should hold the Greaves Cotton Ltd share in your demat account by closing session of 12th Jul 2019. Share purchased on and before (12th Jul 2019) - 2 business days will be available in your demat account by 12th Jul 2019.

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  2. How much I can make with Greaves Cotton Ltd buyback offer?

    Its all depend on acceptance ratio which usually announce with Letter of Offer. Lets assume if you have Greaves Cotton Ltd shares at ₹148 and buyback offer price is ₹175, you can get ₹27 per accepted share. If you hold 1351 shares of Greaves Cotton Ltd and if proportionate acceptance is between 33% and 50%, in such case you are eligible to sell your 446 to 676 shares with the gain from buyback of ₹12042 to ₹18252.

    The percentage of proportionate acceptance varies from company to company. This percentage can be also 100% which means that company buys all of your shares.

    Greaves Cotton Ltd Buyback Profit Calculation

    % Share AcceptedNo of Shared AcceptedGain from Buyback Offer
    33%446₹12042
    50%676₹18252
    75%1013₹27351
    100%1351₹36477

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  3. How to Participate in Greaves Cotton Ltd buyback offer?

    Steps to participate in Greaves Cotton Ltd buyback:

    1. On Record date (12th Jul 2019) you must have share of Greaves Cotton Ltd in your demat account/physical form. Depositing of share in your DP account usually take T+2 days, so you need to plan your buying accordingly.
    2. After that company announces buyback open and close window, so you need to tender your share in buyback process. You can do this online or contact your broker to tender your share in buyback, so he can place a request on your behalf.
    3. Next step is with registrar - depend on buyback acceptance ratio, your shares will be sold in buyback process and fund will directly debited in your bank account. Any rejected share will be revert in your demat account which you can sell in open market or hold for long term gain.

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  4. How many Greaves Cotton Ltd share are eligible for buyback?

    Share holders who hold less than 2 lakh worth of shares are consider in Retail Category. All others will consider in General Category. Last trading price on record date will be used to calculate the eligibility criteria.

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  5. When I need to tender Greaves Cotton Ltd share for buyback?

    Buyback opening date for Greaves Cotton Ltd: 18th Oct 2019

    Buyback closing date for Greaves Cotton Ltd: 1st Nov 2019

    This is the window when you need to submit your application for proposal for share buyback. If you are submitting tender forms or submitting physical share certificates, it must reach to registrar by 4th Nov 2019.

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  6. When I will know how much shares accepted in Greaves Cotton Ltd buyback offer?

    As this is a buyback tender offer, shares are accepted in proportionate basis. Proportionate acceptance / rejection will be returned back to the eligible shareholders directly by the Registrar on or before 13th Nov 2019.

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  7. How and when will I get money for accepted shares of Greaves Cotton Ltd buyback?

    Money will be directly deposited in your registered bank account with broker. Usually money will be deposited on and after 13th Nov 2019, which is last date of settlement of bids on the Stock Exchange.

    In case of physical share holding, you will get a cheque.

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User Comments

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1. Vineet  May 3, 2019 5:47:59 AM IST 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.

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