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Cochin Shipyard Buyback
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The Board of Directors of Cochin Shipyard Ltd. approved a share buyback for its investors on Oct 16, 2018. The details of the buyback include:

Ex-Date: October 30th, 2018

Buyback price: Rs. 455

Premium/Discount as per closing price on 17 Oct’18:  +17.57% on Rs. 387

Buyback of shares: 43,95,610 equity shares (representing 3.23% of the total outstanding number of equity shares in the paid-up share capital of the Company)

Amount of Buyback: Rs. 200 crores (being 6.41% of the aggregate of fully paid-up equity share capital and free reserves)

Shareholding Pattern: The government has 75% shareholding in the company i.e. 10,19,52,000 equity shares. The public shareholding is at 25%.

Shareholding with up to 500 shares: 73,10,903 shares representing 5.37% of total 13,59,36,000  shares.

The maximum no. of shares held to qualify as small shareholder is 439 shares. Reserved shares for retail investors is 6,59,341. Hence the acceptance ratio comes out to be 9.01%.

Following is the dividend provided by the company in the past year:

Corporate Action

Price

Ex-Date

Final Dividend

12.00

6 Aug 2018

With only 3% being bought back, the retail shareholding is 8% approx. for the year ended 31st March, 2018.

With low retail shareholding leading to lower acceptance ratio, we recommend investors to avoid the buyback.

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