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Street signs: Buyback play in HEG, Pabrai turns cautious on CARE, and more

The Pabrai Investment Funds last week sold shares worth Rs 820 million of CARE Ratings

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Buyback play in HEG Graphite company HEG will soon launch a Rs 7.5-billion  buyback of 1.36 million shares at Rs 5,500 apiece, a premium of 40 per cent to the current market price of Rs 3,890. While the buyback price is attractive, analysts sound caution for investors wanting to play the arbitrage game. A total of 204,545 shares are reserved for retail investors in the buyback, but brokerages estimate the acceptance ratio to be between 30 per cent and 40 per cent. “Given the attractive buyback price, existing retail investors should definitely tender shares in the ...