NMDC Buyback Review 2020

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NMDC Buyback is worth Rs 1378 Cr. The size of the buyback is 13.12 cr shares which are 5.0% of the total equity. The buyback price is at Rs 105 per share which is approx 10% high from announcement date price. NMDC buyback record date is 23rd Nov 2020.

Incorporated in 1958, NMDC Ltd formerly known as National Mineral Development Corporationis state-controlled mineral producer company. The company is owned by the Government of India, under the administrative control of the Ministry of Steel.

The company is India’s largest iron producer with 3 mines in Chhattisgarh and Karnataka. The Company also operates the only mechanized diamond mine in the country at Panna in MP. The Company is involved in the exploration of iron ore, copper, rock phosphate, limestone, dolomite, gypsum, bentonite, magnesite, diamond, tin, tungsten, graphite, etc.

This is the 2nd buyback from NMDC in the last 2 years. In 2019 also NMDC has done the buyback of Rs 1000 Cr.

What is NMDC Limited Buyback details?

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

    Buyback Type: Tender Offer
    Buyback Offer Amount: Rs 1378 Cr
    Buyback Number of Shares: 13.12 Cr
    Buyback Price: Rs 105
    Buyback Offer Size (In %): 5.0%
    Total Share Capital: Rs 29,409.07 Cr
    Face Value: 1 Per Equity Share

Can I Invest today to participate in NMDC Limited buyback offer? No

What are NMDC Limited Buyback Important Dates?

In this section we have covered all important dates related to NMDC 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.

    NMDC Limited buyback offer important dates
    Buyback Activity Date
    Board Meeting for Buyback proposal 10th Nov 2020
    Buyback Approval date 10th Nov 2020
    Public Announcement of Buyback 10th Nov 2020
    Record Date 23rd Nov 2020
    Buyback opens on/Buyback Opening Date 17th Dec 2020
    Buyback closes on/Buyback Closing Date 31st Dec 2020
    Cut-off date to receive completed tender forms by Registrar 2nd Jan 2021
    Cut-off date for verification by the Registrar 5th Jan 2021
    Cut-off date to inform Stock Exchange on acceptance or non-acceptance
    of tendered Equity Shares by Registrar
    7th Jan 2021
    Last date of settlement of bids on the stock exchange 8th Jan 2021
    Last date to return unaccepted shares by Registrar 8th Jan 2021
    Last date of extinguishment of Equity Shares 13th Jan 2021

NMDC Limited Share Holding Pattern as of Sep2020

Stock Holding table gives a clear picture on retail investor holdings of NMDC 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 0.0%
    Promoter-Indian 69.65%
    Non-Promoter-Institutions 24.99%
    Non-Promoter-Non-Institutions 5.37%

NMDC Limited Draft Letter of Offer >>Document

NMDC Limited Letter of Offer >>Document

NMDC Limited Post Buyback Public Announcement >>Document

NMDC Limited 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 93.55 per equity share - in such case Max Equity Shares as of Record Date 23rd Nov 2020.
    • General category for all Shareholders other than Small Shareholders ("General Category")

    NMDC Limited Ratio of Buy Back

    Category Entitlement Ratio of Buyback Per Equity Shares Entitlement Ratio of Buyback in %
    Reserved Category 21 Equity Share out of every 89 fully paid-up Equity Share held on the Record Date 23.59
    General Category 10 Equity Share out of every 276 fully paid-up Equity Share held on the Record Date. 3.62%

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

Post buyback comments NMDC Limited

    For NMDC Limited Buyback Offer, Report updated by the manager of buyback -

    In general category - response received 117.68%, No. of Equity Shares reserved in Buyback was 11,15,57,237 where valid bid received for retail category was 13,12,85,789 which is 117.68% oversubscribed.

    In Reserved category for Small Shareholders (Retail) - response received only 0.16%, No. of Equity Shares reserved in Buyback was 1, 96,86,572 where valid bid received for retail category was 32,165 which is 0.16%. Final Acceptance Ratio for Retail Investors was 100%.

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
Indian Toners and Developers LimitedTender Offer36.98 Cr160125.35 (2.20%)15-01-202104-03-202118-03-2021
Gail (India) LimitedTender OfferRs 1046.35 Cr150147.35 (3.19%)28-01-202125-02-202110-03-2021
Neelamalai Agro Industries LimitedTender OfferRs 4.056 Cr160005-02-202124-02-202109-03-2021
National Aluminium Company LtdTender OfferRs 749.10 Cr57.5055.30 (5.13%)08-02-202125-02-202110-03-2021
Suprajit Engineering LimitedTender OfferRs 48 Cr320277.60 (4.34%)22-02-2021TBDTBD
NIIT LimitedTender OfferRs 237 Cr240196.40 (-1.73%)24-02-2021TBDTBD
Smartlink Holdings LimitedTender OfferRs 31.58 Cr9592.20 (0.05%)01-03-2021TBDTBD
Bharat Rasayan LimitedTender Offer107.49 Cr11,5009804.10 (0.36%)05-03-2021TBDTBD
SIS LimitedTender OfferRs 100 Cr550431.50 (2.59%)TBDTBDTBD

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Detail Article on Benefit from buyback offer >> Read

NMDC 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 NMDC Limited? How can I apply in NMDC Limited Buyback offer?

Company Contact Information

Khanij Bhavan
10-3-311/A,
Castle Hills,
Masab Tank,
Hyderabad
Telangana
PinCode:500028
https://www.nmdc.co.in/

Registrar Contact Information

Aarthi Consultants Pvt. Ltd.
1-2-285, Domalguda,Hyderabad 500 029
Tel.:+91(40) 2763 8111
Email:[email protected]
Request call back from

Last Updated on 2021-01-25T21:25:18+00:00


Buyback FAQs

  1. 1. What is the record date for NMDC Limited buyback offer?

    The Record Date for NMDC Limited Buyback offer is 23rd Nov 2020

    Which means you should hold the NMDC Limited share in your demat account by closing session of 23rd Nov 2020. Share purchased on and before (23rd Nov 2020) - 2 business days will be available in your demat account by 23rd Nov 2020.

     

     

  2. 2. How much I can make with NMDC Limited buyback offer?

    Its all depend on acceptance ratio which usually announce with Letter of Offer. Lets assume if you have NMDC Limited shares at ₹90 and buyback offer price is ₹105, you can get ₹15 per accepted share. If you hold 2222 shares of NMDC Limited and if proportionate acceptance is between 33% and 50%, in such case you are eligible to sell your 733 to 1111 shares with the gain from buyback of ₹10995 to ₹16665.

    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.

    NMDC Limited Buyback Profit Calculation

    % Share AcceptedNo of Shared AcceptedGain from Buyback Offer
    33%733₹10995
    50%1111₹16665
    75%1666₹24990
    100%2222₹33330

     

     

  3. 3. How to Participate in NMDC Limited buyback offer?

    Steps to participate in NMDC Limited buyback:

    1. On Record date (23rd Nov 2020) you must have share of NMDC Limited 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.

     

     

  4. 4. How many NMDC Limited 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.

     

     

  5. 5. When I need to tender NMDC Limited share for buyback?

    Buyback opening date for NMDC Limited: 17th Dec 2020

    Buyback closing date for NMDC Limited: 31st Dec 2020

    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 2nd Jan 2021.

     

     

  6. 6. When I will know how much shares accepted in NMDC Limited 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 8th Jan 2021.

     

     

  7. 7. When I need to tender NMDC Limited share for buyback?

    Buyback opening date for NMDC Limited: 17th Dec 2020

    Buyback closing date for NMDC Limited: 31st Dec 2020

    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 2nd Jan 2021.

     

     

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