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Redington Buyback
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The Board of Directors of REDINGTON (INDIA) LTD. approved a share buyback for its investors on Sep 17, 2018. The details of the buyback include:

Ex Date: September 27, 2018

Buyback price: Rs. 125

Premium/Discount as per closing price on 17 Sep’18:  +16.8% on Rs. 107

Buyback of shares: 1,11,20,000 equity shares (representing 2.78% of the total paid-up equity capital of the company)

Amount of Buyback: Rs. 1,390,000,000 (This is less than 10% of the total paid-up equity capital and free reserves of the company as on March 31, 2018)

Shareholding Pattern: Promoters do not have any holding in the mentioned company.

Shareholding with up to 5000 shares: 84,97,916 shares representing 1.06% of total 80,03,45,370 shares. The maximum no. of shares held to qualify as small shareholder are 1600 shares. Reserved shares for retail investors is 16,68,000. Hence the acceptance ratio comes out to be 19.62%.

Redington has provided excellent dividends in the past 3 years.

Corporate Action

Price

Ex-Date

Final Dividend

2.4

20-Jul-18

Dividend

2.3

20-Jul-17

Special Dividend

2

14-Feb-17

Dividend

2.1

19-Jul-16

 

We believe Redington may experience downfall in the coming months following high volatility in the market. Investors must keep in mind the high movements at this point in the market combined with elections approaching next year and other uncertainties in the international markets. Hence it poses considerable risks to participate in the buyback.

Therefore, we recommend investors to avoid the buyback.

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