The board of Piramal Enterprises Limited had granted approval for a buyback of 1,40,00,000 equity shares, with a combined value of up to ₹1750 crore, priced at ₹1250.00 per share. August 25, 2023 has been designated as the record date for identifying the shareholders who qualify for participation in the buyback. You will be eligible for buyback if you have bought shares before the record date. You can check the company announcement here.
|Buyback Type||Tender Offer|
|Buyback Price||₹1250.00 per share|
|Buyback Size||1,40,00,000 shares|
|Record Date||August 25, 2023|
|Opening Date||August 31, 2023|
|Closing Date||September 06, 2023|
|Credit of Buyback OR Refund of Shares||September 13, 2023|
|Retail Entitlement Ratio||7 Shares against 47 Shares (14.89%)|
Shares can be tendered in the buyback through two distinct categories: Retail and General. The determination of the applicable category is based on the value of shares held in the demat account as of the designated Record Date. Shareholders with holdings valued at Rs. 200,000 or below will fall within the Retail category, while those with holdings exceeding Rs. 200,000 will fall into the General category.
I possess shares in the company, but these shares are currently pledged. Can I still participate in the buyback program?
Yes, even if the shares are currently pledged, you remain eligible to participate in the buyback. However, it’s important to note that only unencumbered (free) shares can be submitted in the buyback. Therefore, you will need to release the pledged status of the shares before the buyback order window concludes in order to tender them for the buyback.
It is not necessary to have a Power of Attorney (POA) in order to submit shares for the buyback. To participate in the buyback, you can authorize the process by using CDSL TPIN and OTP for authentication.
I had sold the company’s shares subsequent to the record date. Can I still participate in the buyback offer?
Indeed, since you were in possession of the shares on the record date, you maintain eligibility for the buyback. However, in this specific scenario, you will need to procure shares from the open market and subsequently submit them for the buyback.
If you opt to submit more shares than your designated entitlement, the acceptance of these additional shares within the buyback will be contingent upon the acceptance ratio determined by the company. Any shares that are not accepted will be re-credited to your demat account by the Registrar and Transfer Agent (RTA).
For more information on buyback, you can refer to the letter of offer here.