Mumbai: Wealth managers have spotted a short-term opportunity in the buyback offer of Bharat Electronics (BEL), which could give investors an annualised return of 30.8%, on a investment of Rs 2 lakh over three months. BEL is buying back its shares at Rs 1,305, as against Friday's closing price of Rs 1,212, the record date for which is September 27. As per wealth managers, retail investors holding shares worth less than Rs 2 lakh, as on June 30 do not hold more than 15 lakh shares. Hence, they believe that the probability of retail investors holding less than Rs 2 lakh full shares being accepted is as high as 90%.The holding period for this transaction is 3 months, and if the buyback is accepted, investors will earn an absolute return of 7.7%, or annualised return of 30.8%. "The acceptance ratio could change if more people acquire shares from the market and tender them for buyback.

Source: Economic Times September 19, 2016 02:48 UTC