This is not a Buy/Sell/Hold discussion but more of a discussion of the sort of mess that NDB is now entangled in. After the buyback, I don't believe CDIC's shares will be worth much. Hence current shareholders have to decide whether to hold and take the buy back or sell now.
On the other hand I think NDB has not handled this correctly. They should have changed the articles of association to ensure the major shareholder can force a takeover if the major shareholder holds more than 90%.
If NDB buys out the other shareholders, the cost will not be expensive. CDIC has 43,855,007 in issue of which 150,245 is not theirs. If NDB buys them out at 560/= the cost will be only 84 million.
Even at 1000/= each, it would have cost them only 150 million.
@slstock, This is not about a capital gain but about impairing an asset. Say if a bank writes off a billlion rupees of loans (ie bank assets), how would it get processed. For example when you look at banking and finance stocks, you should look at the NPL ratio. You may say you have an asset, but is it really an asset?