IOC announces share buyback at Rs 149 a share: What’s in it for you

Oil marketing company IndianOil on Thursday announced buyback of 3.06 per cent equity shares at Rs 149 per share for a consideration not exceeding Rs 4,435 crore.

The decision was taken by the company’s board at a meeting held on Thursday. The board fixed a December 25 as record date for the purpose of ascertaining the eligibility of shareholders for the buyback.

“Buyback of equity shares of the company not exceeding 29,76,51,006 equity shares being approximately 3.06 per cent of the total paidup equity share capital of the company at a price of Rs 149 per equity share payable in cash for an aggregate consideration not exceeding Rs 4,435 crore,” the company said in a regulatory filing.


The stock traded at Rs 137 on Thursday. Considering the market price, a shareholder with a maximum of 1,342 shares – worth Rs 1.84 lakh – will be considered a retail investor.

Below are some calculations under various scenarios showing how the acceptance ratio may work and what will be your reward.

If the acceptance ratio is 33%
Under this condition, your buyback profit will be around Rs 5,304. Around 442 shares will be tendered at the time of buyback at the rate of Rs 149, translating into Rs 65,858. The total cost of these shares at Thursday’s price stood at Rs 60,554.

Here are the other scenarios in case the acceptance ratio comes to 50 per cent, 75 per cent and 100 per cent.