Thanks LA for sharing this.

There is a company by the name of SARASWATI COMMERCIAL (INDIA) LTD (512020) , and it announced buyback, at a price of Rs978 (notice screenshot below) and CMP is Rs13.35/-…Whats story here?

WTF is going on

3 Comments

  1. Does it see such sharp valuation from Rs. 13.35 to Rs. 978?
    Or there is some kind of trap over here. Means that this kind of sharp buyback offer will jack up the share prices and then there would be a trap for small and uninformed investors.

    Reply
    • promoter holds 73.35% stake, stock has been highly illiquid, hardly any volume over long time. company is ready to buy just 60,000 share and promoter will participate to maintain their shareholding below or near 75%. They do have huge cash to fund this buyback, given high dividend tax rate, this way work for tax efficient way to return money to shareholders. However no clue on long term fundamental of business.

      Reply

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