Piramal Enterprises Buyback 2023: How to Apply on Angel One?

Piramal Enterprises Ltd (PEL) is a diversified business house that has a robust presence in both the financial services and real estate industries. It is a global brand with a presence in over 30 countries, and it employs around 10,000 people from 21 nationalities. In the period between June 2022 and June 2023, the company has made a profit of over ₹2,322 crore.

Piramal Enterprises is performing the first buyback of its shares since the company went public. The buyback is opening on August 31, 2023. The retail entitlement ratio is 7 shares for 47 shares held on the record date and 1 share for 19 shares held for all other general category shareholders. The price is set at ₹1,250 per share, which is roughly an 18% premium on the current market price of the share at ₹1,052 per share as of August 30, 2023. With this buyback, the company aims to improve its debt-to-equity ratio and attract more investors.

Important Details of the PEL Buyback 2023

How to Apply for the Buyback on Angel One?

Application for selling your shares during a buyback is performed via Angel One in the following process:

1. You will receive an email notification on your registered email whenever a buyback is about to happen for one of the shares in your demat account.
2. You will be able to access the application via this email. Simply enter the number of shares that you wish to sell during the buyback.
3. If your buyback is successful, you will be notified via SMS of whether the shares have been bought, and how many have been bought as well. Remember that the number of shares actually bought from you may depend on whether the buyback is undersubscribed or oversubscribed.
4. This notification about the buyback will come only after the final settlement, which will happen usually within 10-12 days of your application. In the case of PEL, the last date for settlement of bids is September 13, 2023.

Things to Remember While Applying for Buyback

1. Once you apply for a buyback, the shares required for the buyback process will be immediately blocked until the final settlement takes place. This means you will not be able to trade on those shares. If the settlement is successful, the shares will be bought by the company.
2. Although unlikely, your buyback application may get rejected if there is an issue with your demat account.
3. Although the price is fixed, there can be changes in the number of shares sold. For example, if the buyback is oversubscribed, then the company may choose to buy less shares from you.

PEL’s Current Shareholding

As of June 2023, PEL’s top promoter was the Sri Krishna Trust through its Trustees Mr Ajay G Piramal and Dr (Mrs) Swati A. Piramal. The trust owned 33.05% of the company. Overall, the promoters owned 43.48% of the company. FIIs and DIIs owned 26.04% and 11.92% of the company, while the public held roughly 18%.

Final Words

Buyback of PEL shares is usually a great opportunity for shareholders to earn easy and riskless profits. Follow the latest stock market news on Angel One in order to keep track of the market trends. If you are new to the stock market, open a demat account with Angel One today!

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.