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.
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.
»» 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
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 -
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.
Poor (<10% AR),Fair (Bw 11 to 30% AR), Average (Bw 30 to 60% AR, Good (Bw 60 to 90% AR),Excellent (>90% AR)
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.
|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|
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 %|
Greaves Cotton Ltd Letter of Offer >>Document
For Buy back shares holders are divided in 2 categories:
|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%|
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%.
The table below will give you a complete dashboard view for all open buyback offer in current market.
|Company Name||Buyback Type||Offer Amount||Buyback Price||CMP||Record Date||Buyback Open Date||Buyback End Date|
|Thomas Cook India Ltd||Tender Offer||Rs 150 Cr||57.50||31.10 (4.71%)||07-03-2020||TBD||TBD||NIIT Technologies||Tender Offer||Rs 337 Cr||1725||1457.30 (0.46%)||12-03-2020||29-05-2020||11-06-2020||Tips Industries Limited||Tender Offer||Rs 18.90 Cr||140||103.15 (-0.43%)||03-04-2020||TBD||TBD||Coral India Finance And Housing Ltd||Tender Offer||Rs 21.08 Cr||17||14.01 (-2.16%)||17-04-2020||TBD||TBD||Indiabulls Real Estate Limited||Tender Offer||Rs 500 Cr||100||44.30 (1.14%)||TBD||TBD||TBD||Granules India Ltd||Tender Offer||Rs 250 Cr||200||181.25 (5.78%)||TBD||TBD||TBD|
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Detail Article on Benefit from buyback offer >> ReadGreaves 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?
Last Updated on 2019-11-15T21:37:58+00:00
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.
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.
|% Share Accepted||No of Shared Accepted||Gain from Buyback Offer|
Steps to participate in Greaves Cotton Ltd 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.
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.
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.
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.