Buyback is an interesting investment for short term gain (3 to 6 months). However most of the time, the acceptance ratio is not 100% and you will be left out with some shares post buyback in your holding. Usually buyback accepted shares profit doesn't include in your brokers portfolio. In such case, finding breakeven point for left out shares is challenging. To overcome this, we are presenting the Buyback Calculator.
Total Investment: Rs: 0
Buyback Return: Rs: 0
Current Price Value: Rs: 0
Total P/L: Rs: 0 0
Breakeven Price: Rs: 0
P/L per remaining shares Rs: 0
To use buyback calculator, you need to input your buy qty, buy price, buyback accepted quantity, buyback price and current market price. With the above given input we calculate Total profit/loss value and breakeven value for your purchase. If you are in profit, value will show in positive number and in case of loss, value will show in negative number. Breakeven price will be the point where your investment will be no profit no loss.
You can use buyback calculator when buyback acceptance ratio is not 100% and you are left out with shares post buyback. Usually when buyback completes, share price will drop from its existing level, so it's important to find your breakeven point and plan accordingly for left out shares.
In case of buyback, you can put 100% shares for tender offer. The registrar will do his calculation and accept the shares as per tender shares volume. In case your shares are not accepted 100%, remaining shares will be return to your DP. You can check your left out shares in your portfolio. You will get contract note from your broker for accepted shares.
15% shares are reserved for retail category out of total buyback size. Now on record date, the Registrar review the list of retail investors (who holds less than 2 lakh worth of shares) and do the calculation of acceptance ratio. The calculation is done assuming 100% retail investors will participate in buyback. So buyback acceptance ratio for retail category is always higher from the announcement ratio.