Conviction of Mind

Currently, the market price is going up as the delisting process is going on.The buyback will occur only at the price in which Igate can get 90% of the holdings. So, it will be quite high if some of them do not bid or put some high price. So, Putting a high price/Not bidding are almost the same. The CMP is at around Rs 392/- now. When you are putting a high price, the exit price will be lower than your price and then you can tender your shares at the exit price at later point of time. But instead, if you prefer not to bid also, it is the same case, you can directly sell the shares to the company at the exit price. So, both of them are same... But what happens when you are bidding at a lower price, you are actually getting down the exit price and it affects all of us. So, If you aren't sure how much it is worth it, you can see the current status of the buyback @ Buyback-Igate So, stay out of bidding if you are in the view of bidding less. I can see some 25 shares (very meagre amount...

I said it is worth the bet in my previous post . For delisting, the owner should atleast have 90% of the company's share. This is not the case with Igate which has only 80.1% currently. But it can continue with delisting process as it is approved by the shareholders. The floor price for the delisting process is set at Rs. 288.90/- , which is the 26 day average of high and low price. The current market price is Rs. 374/-. As I said before, there is no ceiling price and one can bid at whatever price he likes! The price will be decided after the Reverse book building process and it is decided by the price quoted by majority of the people much similar to IPO book building. The management then decided to carry on or cancel the de-listing process at will after the exit price is known. If the exit price is approved, then that price will be the price at which the management buy back all the shares. If the price you quoted is greater than exit price then yours will not be bought by the comp...

Igate solutions has come up with a delisting plan and the market reacted with a surge of 10% on the same day. Current market price is Rs.373/- It is going to get de-listed by the 1st week of December. Is it worth the bet to buy now? I will give you more insight on this deal. The company's profit is moving up every year starting from 2004 when it reported negative EPS. Because of the management change, it has come up to buy back all the shares from the Indian share market. It would continue to be traded on NYSE though. As it is a IT company, the current rupee Vs dollar issue certainly affects the revenue. But still the chairperson of IGate has announced that the buy back price will certainly be higher and he is happy about it :) If we keep P/E as 15, then the price at FY08 will certainly be around Rs. 435/- . If P/E is kept at the price would be around Rs.415/- . The buy back price is expected to above Rs.400/-. Igate is going to buy back its shares by a process called Reverse Book ...