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  #41  
Old 15th October 2012, 06:25 PM
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Quote:
Originally Posted by ijay View Post
How would it mean further dip in Infy's earnings ? Would the earnings from Lodestone not bring credit to Infosys ?
I couldn't find any details about Lodestone's financials.

The eps may go down in two cases:

1. Lodestone is a loss-making firm.
2. Lodestone was bought for a high price. Don't forget that Lodestone's acquisition will bring down Infosys' cash balance and hence the company's interest income will go down.

Every Rs 100 worth of cash gives Infosys around Rs 5-6 of post-tax interest income.
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  #42  
Old 16th October 2012, 10:30 AM
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How does the money spent on the acquisition reflect on the income statement? Is it booked once, amortized or not included at all?
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  #43  
Old 16th October 2012, 02:42 PM
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Quote:
Originally Posted by $$Money$$ View Post
How does the money spent on the acquisition reflect on the income statement? Is it booked once, amortized or not included at all?
As far as acquisition costs are concerned, there is no uniformity in India.

Quote:
Acquisition-related costs

Currently there is no specific guidance on accounting for acquisition-related costs under Indian GAAP. In practice, most companies consider acquisition-related cost for goodwill calculation, which is not in accordance with IFRS or Ind AS, which categorise such costs under income statement.
Business Line : Industry & Economy / Taxation & Accounts : Accounting for overseas buys

Hindalco had written-off a part of its investment in Novelis by adjusting it against share premium account.

Quote:
India’s biggest aluminium producer, Hindalco Industries Ltd, is planning to route the cost of buying Novelis Inc. through the balance sheet, rather than the usual practice of showing it in the profit and loss account.
Hindalco trying to hide losses on Novelis investment - Livemint

I am not sure what Infosys will be doing, but I guess it will stick to the policy that it has followed in the path.
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  #44  
Old 12th April 2013, 04:37 PM
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Results are not so bad to deserve a 20% plus fall.

What's cooking?
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  #45  
Old 12th April 2013, 06:49 PM
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Quote:
Originally Posted by Atiker View Post
Results are not so bad to deserve a 20% plus fall.

What's cooking?
Downgrade and dumping by FIIs I guess. Nothing to worry about in long run but next 2-3 quarter results also needs to be seen from whether it goes flat to negative.
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  #46  
Old 13th April 2013, 09:40 AM
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When will analysts be realistic in their expectations about Infosys? - Moneylife
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  #47  
Old 13th April 2013, 11:27 PM
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Quote:
Originally Posted by Atiker View Post
Results are not so bad to deserve a 20% plus fall.

What's cooking?
I guess the sharp correction was caused by a combination of excessive leverage and disappointing results.

Infosys has given a guidance on only 6%-10% for next year. Also, the company hasn't given an EPS estimate.

With increasing costs, it's possible that Infosys reports a lower PAT next year (assuming the Rupee remains stable).

One thing I noted, the market capitalization of TCS is now twice that of Infosys.

It seems the market has given up on Infosys.
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  #48  
Old 1st June 2013, 01:05 PM
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Infosys surprise: NR Narayana Murthy comes back as Executive Chairman of Board

Infosys recalls Murthy to head the company in challenging days
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  #49  
Old 16th August 2013, 09:33 PM
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What do you guys think about this class action lawsuit - Class action lawsuit against Infosys in U.S. - The Hindu

I think Infosys has a good chance of losing this lawsuit. And if that happens, I think similar lawsuits will happen on other Indian companies.
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  #50  
Old 16th August 2013, 09:57 PM
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Quote:
Originally Posted by vinvest View Post
I think Infosys has a good chance of losing this lawsuit. And if that happens, I think similar lawsuits will happen on other Indian companies.
I too feel Infosys will lose this one. From whatever I have heard and read about Indian IT companies in US, I don't think these allegations are baseless. Companies avoid hiring Americans because Americans demand higher salaries, not because they are less talented.
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  #51  
Old 28th August 2013, 12:06 AM
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Stop Blaming Indian Companies for Visa Abuse - Bloomberg.
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  #52  
Old 28th August 2013, 06:22 AM
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Quote:
Originally Posted by Alchemist View Post
I too feel Infosys will lose this one. From whatever I have heard and read about Indian IT companies in US, I don't think these allegations are baseless. Companies avoid hiring Americans because Americans demand higher salaries, not because they are less talented.
And this applies to both Indian as well as American companies. Even American companies prefer desi coolies.

Not enough American are ready to do shitty work on unholy hours at peanut salary. Will any American be ready to attend unannounced p1 calls on a weekend ? Only Indians (and maybe Chinese) put their family on second pedestal.

Another reason is if one is willing to pay peanuts, monkey is what they will get.
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  #53  
Old 28th August 2013, 08:08 AM
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Quote:
Originally Posted by Atiker View Post
And this applies to both Indian as well as American companies. Even American companies prefer desi coolies.

Not enough American are ready to do shitty work on unholy hours at peanut salary. Will any American be ready to attend unannounced p1 calls on a weekend ? Only Indians (and maybe Chinese) put their family on second pedestal.

Another reason is if one is willing to pay peanuts, monkey is what they will get.
The question is will the courts accept such excuses?

"Others are also doing it" is a weak defense in court.

Can the company prove that "Americans are lazy" and so it hires Indians?
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  #54  
Old 28th August 2013, 09:14 AM
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It is an open secret that Indian IT companies abuse visa laws to staff low cost resources from Asian countries (mainly from India).

The reason why this has gone on for decades is because it is very difficult to prove it.

Though the companies do not follow the laws in "spirit", they do manage to follow it in "letter".

Unless an insider divulges secrets, this will be very difficult to prove.
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  #55  
Old 28th August 2013, 10:50 AM
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Quote:
Originally Posted by Alchemist View Post
Can the company prove that "Americans are lazy" and so it hires Indians?
That's not a defense even if they can prove it.
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  #56  
Old 28th August 2013, 11:08 AM
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Quote:
Originally Posted by Alchemist View Post

Can the company prove that "Americans are lazy" and so it hires Indians?
I feel it's that birth right to be lazy. When you are born with a platinum spoon in mouth why on earth will they settle for gold ? .
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  #57  
Old 6th October 2013, 02:51 AM
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Results are ahead this weekend on coming Friday and Infosys in tight range. What should be the strategy in options to play?

3000 Long Straddle ?
2700/3300 OR 2600/3400 Long Strangle ?
3000 Short Straddle?
2700/3300 OR 2600/3400 Short Strangle?
Go Long on futures at 3000 and take a Put at 3000 for 170 RS?
Go Short on futures at 3000 and take a call at 3000 for 212 Rs?
Buy 125 shares in cash and sell 3000 Put for 170 Rs?

Last the least watch show from sidelines!

One of them would be a winner?
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  #58  
Old 6th October 2013, 09:31 AM
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Quote:
Originally Posted by man4urheart View Post
Results are ahead this weekend on coming Friday and Infosys in tight range. What should be the strategy in options to play?

3000 Long Straddle ?
2700/3300 OR 2600/3400 Long Strangle ?
3000 Short Straddle?
2700/3300 OR 2600/3400 Short Strangle?
Go Long on futures at 3000 and take a Put at 3000 for 170 RS?
Go Short on futures at 3000 and take a call at 3000 for 212 Rs?
Buy 125 shares in cash and sell 3000 Put for 170 Rs?

Last the least watch show from sidelines!

One of them would be a winner?
All strategies sound good.

Which one strategy are you planning to go for?

May be we can try to take on Monday ahead of result.

Rs vs. USD is 50-50 as it's in the middle.

So Neutral effect.

2nd, Result would be same as before qtrs. Last qrt was up because the one of its former employee re-joined.

In a nutshell one should look downside target I think. [But technically it does not look weak so far].

So hard to judge at this movement.

Any strategy that you think of?

Happy Investing !
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  #59  
Old 6th October 2013, 01:22 PM
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You could try a reverse iron butterfly looking to capture a 10% movement on either side before expiry.
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  #60  
Old 7th October 2013, 09:52 AM
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Quote:
Originally Posted by arcus View Post
You could try a reverse iron butterfly looking to capture a 10% movement on either side before expiry.
That's my suggestion too, but I feel it's better to sell options that are close to the current market price. I don't expect any exceptionally large move on either side.

Further the options are from the current price, further the breakeven point will be.
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  #61  
Old 11th October 2013, 09:38 AM
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Did anyone initiate a position in Infosys just before the results?
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  #62  
Old 24th August 2017, 09:19 AM
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What do you guys think about Infosys now?

Can we enter at this level as buyback is also in the pipeline?
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  #63  
Old 24th August 2017, 09:37 AM
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sachinjee, if I have 100 shares of infy, how many I can sell in buyback offer?

Request to comment on this buyback process in detail, thank you.
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  #64  
Old 24th August 2017, 11:14 AM
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Quote:
Originally Posted by ramkasi View Post
sachinjee, if I have 100 shares of Infy, how many I can sell in buyback offer?

Request to comment on this buyback process in detail, thank you.
You should tender all shares. Retail acceptance ratio will be less than 20%.

Who is your broker? Please check in advance whether the broker can transfer the share online for the buyback?

If not, keep your DIS booklet ready.
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  #65  
Old 24th August 2017, 12:51 PM
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What do you think from business perspective?

Do you feel is it worth to invest it at this point of time, say time frame is 1~2 years?

Expectation is 15% return per annum.
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  #66  
Old 24th August 2017, 02:48 PM
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How to tender the shares? What is record date? What is deadline to tender the shares? Or is it still not decided?
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  #67  
Old 24th August 2017, 03:43 PM
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Quote:
Originally Posted by Alchemist View Post
You should tender all shares. Retail acceptance ratio will be less than 20%.

Who is your broker? Please check in advance whether the broker can transfer the share online for the buyback?

If not, keep your DIS booklet ready.
My broker is Karvy.

DIS BOOKLET .... heard about it after few years, I forgot about it a few years back, I need to check where I kept that.
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  #68  
Old 26th August 2017, 05:49 PM
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Found that, in case of TCS buyback offer the acceptance ratio for retail shareholders works out to be below 3 percent.
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  #69  
Old 16th October 2017, 11:09 AM
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Quote:
Originally Posted by Alchemist View Post
You should tender all shares. Retail acceptance ratio will be less than 20%.

Who is your broker? Please check in advance whether the broker can transfer the share online for the buyback?

If not, keep your DIS booklet ready.
How do you calculate retail acceptance ratio? Most of the website are claiming acceptance ratio to be around 60%.
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  #70  
Old 16th October 2017, 02:44 PM
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Quote:
Originally Posted by purple_heyze View Post
How do you calculate retail acceptance ratio? Most of the website are claiming acceptance ratio to be around 60%.
I made a mistake in my earlier post.

SEBI has kept a mandatory 15 per cent reservation for small retail investors in buyback offers.

I didn't consider that in my earlier post.

A very large proportion of retail investors don't tender their shares and so the final ratio for retail investors is higher than what would have been if everyone had tendered.

The final ratio cannot be calculated. It will only be known after the buyback is over.

I need to study Infosys case a bit. I will update in 1-2 days.
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  #71  
Old 18th October 2017, 10:29 AM
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Quote:
Originally Posted by purple_heyze View Post
Most of the website are claiming acceptance ratio to be around 60%.
60% is just a calculated guess.

There are a couple of reports on the internet that mention this 60% number.

Quote:
According to the company’s filings, 2.87 crore Infosys shares were with investors holding 200 shares or less as of March 31. If we assume a price of Rs 1,000 on the record date for Infosys, the value of the shares held by these investors will be Rs 2 lakh or less, qualifying them as retail investors.
https://www.bloombergquint.com/marke...nfosys-buyback

I am not sure where they got this data from because the data on NSE's website shows how many shareholders have shares of nominal capital up to Rs 2 lac and not value Rs 2 lac.

Whatever be the figure, I think the acceptance ratio will be pretty high.

Quote:
Recent buybacks of companies like Wipro Ltd., Bharti Infratel Ltd., Mphasis Ltd. and Tata Consultancy Services Ltd. saw an acceptance ratio of 100 percent – which means all the shares tendered were accepted. One of the reasons could be lower participation or many investors not opting for the share buyback.
Only risk here is that share price may go down after the buyback is over. If the price goes down sharply, for some reason, those playing for arbitrage will end up with losses.
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  #72  
Old 18th October 2017, 10:39 AM
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Quote:
Originally Posted by Alchemist View Post
60% is just a calculated guess.

There are a couple of reports on the internet that mention this 60% number.

https://www.bloombergquint.com/marke...nfosys-buyback

I am not sure where they got this data from because the data on NSE's website shows how many shareholders have shares of nominal capital up to Rs 2 lac and not value Rs 2 lac.

Whatever be the figure, I think the acceptance ratio will be pretty high.

Only risk here is that share price may go down after the buyback is over. If the price goes down sharply, for some reason, those playing for arbitrage will end up with losses.
You can get shareholding pattern in their Annual report. My guess is, Acceptance ratio may actually go down to 50% because of latest enthu all retailers are showing and media coverage.

In the MindTree buyback retail actually lost money due to this.
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  #73  
Old 18th October 2017, 11:49 AM
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Originally Posted by nitinku5021a View Post
You can get shareholding pattern in their Annual report. My guess is, Acceptance ratio may actually go down to 50% because of latest enthu all retailers are showing and media coverage.

In the MindTree buyback retail actually lost money due to this.
Yes, you are right. The breakup is available in the annual report.

What was the final acceptance ratio in case of Mindtree?
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Old 18th October 2017, 12:29 PM
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Yes, you are right. The breakup is available in the annual report.

What was the final acceptance ratio in case of Mindtree?
Retail portion received response of 709% so for each 7 shares submitted only 1 got accepted. Moreover the price went down significantly once the buyback process got over. So net net...huge loss incurred by retail guys. Only promoters encahsed their portion nicely.
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Old 18th October 2017, 01:15 PM
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Originally Posted by nitinku5021a View Post
You can get shareholding pattern in their Annual report. My guess is, Acceptance ratio may actually go down to 50% because of latest enthu all retailers are showing and media coverage.

In the MindTree buyback retail actually lost money due to this.
Acceptance of 50%, and current price of 930ish... I think loss will happen only if post buyback prices go till 650ish types, right?
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Old 18th October 2017, 01:18 PM
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Acceptance of 50%, and current price of 930ish... I think loss will happen only if post buyback prices go till 650ish types, right?
Assuming 50% acceptance, yes.

If it goes below 50%, say 30%, then the chance of loss increases significantly. And post buback prices will go down for sure.
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Old 18th October 2017, 03:21 PM
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Originally Posted by nitinku5021a View Post
Assuming 50% acceptance, yes.

If it goes below 50%, say 30%, then the chance of loss increases significantly. And post buback prices will go down for sure.
If we buy it today at 930/-, acceptance gets at 30%, and post buyback prices drops to Rs 830/-, even then it comes out to break-even.
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Old 18th October 2017, 06:26 PM
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Originally Posted by purple_heyze View Post
If we buy it today at 930/-, acceptance gets at 30%, and post buyback prices drops to Rs 830/-, even then it comes out to break-even.
Yes, as long as terms are favorable and things remain the same, we can calculate and be happy. In MindTree case, we hadn't even thought it will go that much over subscription. Anyway, that's the game, if something looks too easy and too lucrative, wait and analyze some more.
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Old 19th October 2017, 11:56 AM
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What is the procedure to tender shares for buyback?

Can we do it online by banks or trading terminal/brokers?

What is the procedure?

Or its physical form and then apply?

Happy Investing!
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Old 19th October 2017, 05:27 PM
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Originally Posted by San Yad View Post
What is the procedure to tender shares for buyback?

Can we do it online by banks or trading terminal/brokers?

What is the procedure?

Or its physical form and then apply?

Happy Investing!
Who is your broker? Some brokers have online option.

Otherwise one has to transfer shares to escrow account and send a form to the company.
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