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Buyback of Shares in Indian Stock Market

29 Nov 2023

Motilal Oswal Financial Services Limited, a company listed in both the Bombay Stock Exchange and the National Stock Exchange, has recently announced that it would conduct a buyback exercise amounting to Rs. 160 crores. 

Through this exercise, the company is looking to buy back around 14,54,545 equity shares from its shareholders at a price of Rs. 1,100 per equity share. The record date for the buyback has also been set on May 27, 2022. 

This effectively means that all shareholders on the company’s books as on the record date will be eligible to apply for the buyback. The size of the buyback would constitute around 0.98 percent of the company’s total paid up equity share capital as on March 31, 2022. 

Individuals holding the equity shares of Motilal Oswal Financial Services Limited as on the record date can apply for the buyback through their trading portal.

How to apply for the buyback of shares through the Motilal Oswal Trading Platform?

Applying for the buyback through the trading platform of Motilal Oswal is extremely easy. Here’s what you would have to do. 

Things to keep in mind when applying for the buyback of shares of Motilal Oswal 

Now that you know how to apply for the buyback, here’s a quick look at some of the key things that you should keep in mind when doing so.  

  • Charges 

Depending on the trading platform through which you apply for the buyback, you may have to pay a non-refundable charge for every order that you place. You may have to pay this charge even if your buyback application is unsuccessful. The charges can vary depending on the kind of brokerage plan that you’ve opted for as well. 

  • Pledge 

If you’ve pledged your Motilal Oswal shares, you will still be considered to be eligible for applying for the buyback. However, you would have to first unpledge your shares before tendering them to the company for the buyback. So, this is something that you should account for when applying for the buyback. 

  • Securities Transaction Tax (STT)

If your buyback application is approved, you will be liable to pay Securities Transaction Tax (STT) equivalent to around 0.1% of the total value of your buyback portion. 

 

Conclusion

With this, you must now be aware of all the key details of the buyback of shares proposed by Motilal Oswal Financial Services Limited. If you’re an eligible shareholder in the company you can tender your shares to the company via your trading platform and if not than open a demat account with motilal oswal and start trading. 

 

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