Source :- Bajaj Auto Annual Report March 23
Based on 31 march 23 Annual Report 1.96% i.e. 208535 shares holder hold below 500 Shares totalling to 5542747 shares, If we assume out of above shares if retail shareholder below 27 shares (who only falls under retail category as per current price of 7200/- ) are holding 70% shares viz. 5542747 x 70% = 38,80,000 shares approx
Buyback size for Retail share holder is 6 lakh shares ( 40 lakh shares *15% ) , if we divide 6 L / 38.80 L ( tentative ret. SH) comes to 15.5% approx eligibility ratio.
If current rate of around 7200 also remain same at record date and after buy back completion , then Retail investor investing 7200 x 27 = 194400/- may get acceptance of 4 shares with profit of 4 x 2800 = 11,200/- i.e. approx. 5.75%
Disclaimer :-
- If rate after buyback reduces then such profit may not come as to sell remaining shares at lower rates vice versa on increase of rates after buyback profit will increase
- Assumption of 70% shares hold by Retail ( out of under 500 category ), is taken, if such % is more then it will effect acceptance ratio
- HNI investor may hedge their remaining shares with 2 month ahead future if invest fully as retail investor in their 5-6 family a/cs
- Period involved in buyback normally 2 months which may increase in unforeseen circumstances
- Above calculation is based on 31s march annual report and some assumption taken in it, which may or may not be correct.
- check data at your end before investing above is just for educational purpose, no recommendation to buy and sell.
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