Incorporated in the year 1981, NIIT Limited is a skills and talent development corporation which builds a manpower pool for global industry requirements. The company has multiple subsidiaries in India as well as abroad in the USA, China, and Canada. It provides Managed Training Services (MTS) to market-leading companies in North America, Europe, Asia, and Oceania. The company has been named among the Top 20 Training Outsourcing Companies for the past twelve consecutive years by Training Industry, Inc. USA.
NIIT Limited is coming up with 2nd buyback in the past 2 years. The company is to buy 98.75 Lakh equity shares of ₹237 Cr at ₹240 per share. The offer size is 6.978% of the total paid-up equity share capital. The acceptance ratio for 2019 buyback was 64%. So we assume that, in 2021, the acceptance ratio will lie in between 60% to 90%.
Below is the complete details about NIIT Limited Buyback. Record date, buyback open and close dates are announce in below section.
| Buyback Type: | Tender Offer |
| Buyback Offer Amount: | Rs 237 Cr |
| Buyback Number of Shares: | 98.75 Lakh |
| Buyback Price: | Rs 240 |
| Buyback Offer Size (In %): | 6.97% |
| Total Share Capital: | 2841.6 Cr |
| Face Value: | 2 Per Equity Share |
Can I Invest today to participate in NIIT Limited buyback offer? No
In this section we have covered all important dates related to NIIT Limited 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.
| Buyback Activity | Date |
|---|---|
| Board Meeting for Buyback proposal | 24th Dec 2020 |
| Buyback Approval date | 12th Feb 2021 |
| Public Announcement of Buyback | 15th Dec 2020 |
| Record Date | 24th Feb 2021 |
| Buyback opens on/Buyback Opening Date | 12th Apr 2021 |
| Buyback closes on/Buyback Closing Date | 28th Apr 2021 |
| Cut-off date to receive completed tender forms by Registrar | 30th Apr 2021 |
| Cut-off date for verification by the Registrar | 6th May 2021 |
| Cut-off date to inform Stock Exchange on acceptance or non-acceptance of tendered Equity Shares by Registrar | 6th May 2021 |
| Last date of settlement of bids on the stock exchange | 7th May 2021 |
| Last date to return unaccepted shares by Registrar | 7th May 2021 |
| Last date of extinguishment of Equity Shares | 14th May 2021 |
Stock Holding table gives a clear picture on retail investor holdings of NIIT Limited 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 | 22.2% |
| Promoter-Indian | 34.3% |
| Non-Promoter-Institutions | 34% |
| Non-Promoter-Non-Institutions | 8.4% |
NIIT Limited Public Announcement >>Document
NIIT Limited Draft Letter of Offer >>Document
NIIT Limited 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 | 102 Equity Share out of every 919 fully paid-up Equity Share held on the Record Date | 11.11 |
| General Category | 19 Equity Share out of every 292 fully paid-up Equity Share held on the Record Date | 6.51% |
Buyback Calculator - Check your Profit/Loss and Breakeven point for left out shares.
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 |
|---|---|---|---|---|---|---|---|
| Suprajit Engineering Limited | Tender Offer | Rs 48 Cr | 320 | 283.50 (-0.70%) | 22-02-2021 | 08-04-2021 | 26-04-2021 | NIIT Limited | Tender Offer | Rs 237 Cr | 240 | 177.55 (-0.22%) | 24-02-2021 | 12-04-2021 | 28-04-2021 | Smartlink Holdings Limited | Tender Offer | Rs 31.58 Cr | 95 | 84.20 (-0.12%) | 01-03-2021 | TBD | TBD | Bharat Rasayan Limited | Tender Offer | 107.49 Cr | 11,500 | 9984.35 (-1.70%) | 05-03-2021 | TBD | TBD | Aarti Drugs Limited | Tender Offer | Rs 60 Cr | 1000 | 733.80 (3.03%) | 01-04-2021 | TBD | TBD | SIS Limited | Tender Offer | Rs 100 Cr | 550 | 391.95 (-0.42%) | 09-04-2021 | TBD | TBD | SIS Limited | Tender Offer | Rs 100 Cr | 550 | 391.95 (-0.42%) | 09-04-2021 | TBD | TBD | Quick Heal | Tender Offer | Rs 155 Cr | 245 | 193.45 (-0.46%) | TBD | TBD | TBD |
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Detail Article on Benefit from buyback offer >> Read
NIIT Limited 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 NIIT Limited? How can I apply in NIIT Limited Buyback offer?
Last Updated on 2021-04-05T23:25:46+00:00
The Record Date for NIIT Limited Buyback offer is 24th Feb 2021
Which means you should hold the NIIT Limited share in your demat account by closing session of 24th Feb 2021. Share purchased on and before (24th Feb 2021) - 2 business days will be available in your demat account by 24th Feb 2021.
Its all depend on acceptance ratio which usually announce with Letter of Offer. Lets assume if you have NIIT Limited shares at ₹200 and buyback offer price is ₹240, you can get ₹40 per accepted share. If you hold 1000 shares of NIIT Limited and if proportionate acceptance is between 33% and 50%, in such case you are eligible to sell your 330 to 500 shares with the gain from buyback of ₹13200 to ₹20000.
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 |
|---|---|---|
| 33% | 330 | ₹13200 |
| 50% | 500 | ₹20000 |
| 75% | 750 | ₹30000 |
| 100% | 1000 | ₹40000 |
Steps to participate in NIIT Limited 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 NIIT Limited: 12th Apr 2021
Buyback closing date for NIIT Limited: 28th Apr 2021
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 30th Apr 2021.
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 7th May 2021.
Buyback opening date for NIIT Limited: 12th Apr 2021
Buyback closing date for NIIT Limited: 28th Apr 2021
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 30th Apr 2021.
