The company is expecting receivable from its debtors outside India which were delayed. Thus the redemption of its FCCBs was postponed. The company is restructuring its foreign step--down subsidiaries, in order to facilitate the redemption of its Bonds. This restructuring would be completed within a short while from now.
The company has proposed a buyback upto 25% of equity shares, however the same also has to be approved by the shareholders through a postal ballot. The company is expecting to commence the buy back process post the redemption of FCCBs and completion of the necessary formalities.
This implies that the Buy Back of the shares will be at a Premium to the current price of the share. Also, 25% is not a small amount--though companies seldom sticks to the announced figures.
Buy the scrip on any dip and remain invested. This is a blue chip company of the type of Geometric Software Ltd, Mastek Ltd, Mphasis Ltd, etc. Hence, those who will be a little patient will always make money from the scrip. I am expecting non--stop circuits in the coming days, CMP: Rs.10.54.
Note: This note was sent to the Paid Members on 3rd April, 2013.