Buyback of shares is a corporate action of buying or repurchasing the company’s own shares from its existing shareholders. It is basically initiated to increase the value of outstanding shares thereby reducing the number of shares in the market.
The Buyback of shares is governed by SEBI (Buyback Of Securities) Regulations, 2018.
The buyback of shares is offered at a higher price compared to the current market price. The Company after its meeting comes up with a Buyback Record Date where the Buyback of shares is finalized.
Reasons for buyback of shares
- The buyback helps a company to boost/increase the share prices of their undervalued stock.
- It increases and strengthens the promoter holdings.
- It permits the shareholders to exit their positions at a premium price.
- It increases the Company’s EPS or Earnings Per Share.
- As the EPS increases, the financial statements of the Company offering Buyback increases too.
- Buyback of shares lets an existing shareholder exit easily from an undervalued stock.
Disadvantages Of Buyback
- The impactful growth of the Company’s finances may or may not be real.
- Instead of a valued investment, there are chances of diversion of excessive cash for the buyback.
BUYBACK OFFER 2021
The Company that offers buyback of shares is of two types.
- Tender Offer
- Open Market Offer
Share Buyback List 2021
|Cheviot Company Limited||Dec 17, 2021||Tender Offer||1725|
|Weizmann Limited||Dec 10, 2021||Tender Offer||60|
|MOIL Limited||Dec 31, 2021||Tender Offer||205|
|MPS Limited||Dec 17, 2021||Tender Offer||900|
|AksharChem (India) Limited||Nov 12, 2021||Tender Offer||590|
|S H Kelkar and Company Limited||Nov 12, 2021||Tender Offer||210|
|Nucleus Software Exports Ltd.||Nov 27, 2021||Tender Offer||700|
|Goldiam International Limited||Oct 27, 2021||Tender Offer||1200|
|eClerx Services Limited||Sep 30, 2021||Tender Offer||2850|
|Rishiroop Limited||Sep 09, 2021||Tender Offer||125|
|Mahalaxmi Rubtech Limited||Aug 27, 2021||Tender Offer||70|
|Star Cement Limited||Aug 26, 2021||Tender Offer||150|
|Gandhi Special Tubes Limited||Aug 31, 2021||Tender Offer||550|
|R Systems International||Aug 27, 2021||Tender Offer||225|
|Shriram Pistons & Rings Limited||Aug 12, 2021||Tender Offer||1020|
|Kaveri Seed Company Limited||–||Open Market||850|
|Balrampur Chini Mills Limited||–||Open Market||410|
|Tanla Platforms Limited||–||Open Market||1260|
|Infosys Limited||–||Open Market||1750|
|Welspun India Limited||May 26, 2021||Tender Offer||120|
|Navneet Education Limited||–||Open Market||100|
|Infobeans Technologies Limited||May 07, 2021||Tender Offer||232|
|Quick Heal Technologies Limited||May 03, 2021||Tender Offer||245|
|SIS Limited||Apr 09, 2021||Tender Offer||550|
|Smartlink Holdings Limited||Mar 01, 2021||Tender Offer||95|