Street signs: Retail success rate to be high in Infosys buyback

Retail investors could see high success rate in the Rs 13,000-crore buyback of Infosys, starting on Thursday. While the ‘entitlement ratio’ for retail shareholders is 28 per cent, the ‘acceptance ratio’ could be as high as 50 per cent, say brokers. In other words, a retail shareholder holding 100 shares of Infosys can tender 28 shares under the buyback programme. However, if the shareholder tenders say 100 shares, it is likely that about 50 could be accepted. This is because typically most retail shareholders don’t tender shares in buybacks. This trend was seen in recent buybacks of Wipro and HCL