Mindtree buyback

Following TCS, Mphasis now Mindtree is coming up with the shares buyback plan. Though at this point it is very uncertain to list out the details, yet it should be kept in mind if you are a retail share holder.

If you are aware of buyback process then following detail is of relevant to you:

  1. Price of mindtree share as on 22nd June 2017 is 520 INR.
  2. The buyback price is likely to be +15% of current price i.e. 600 INR. If the board is generous, it could even be at its 52 weeks high i.e. 680 INR.
  3. As on March 2017 Quarter, there are 89139 people, holding 1,35,80,985 shares which is roughly 8.08 %. This is on contrast with TCS (~3% retail share holding) and Mphasis (~2.35%)
  4. There was 100% acceptance ratio for TCS and Mphasis, which may not come true for Mindtree since there is retail shareholder percentage is higher.
  5. The board is likely to announce the details on 28th June when the actual numbers will come out and this thread will be updated as well.

Verdict: This may result in small term gain of  ~10% even before the numbers are announced and the buyback process starts. So you can start accumulating at current levels.

More update to follow.

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