BUY-BACK

BUY-BACK

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

  1. The buyback helps a company to boost/increase the share prices of their undervalued stock.
  2. It increases and strengthens the promoter holdings.
  3. It permits the shareholders to exit their positions at a premium price.
  4. It increases the Company’s EPS or Earnings Per Share.
  5. As the EPS increases, the financial statements of the Company offering Buyback increases too.
  6. Buyback of shares lets an existing shareholder exit easily from an undervalued stock.


Disadvantages Of Buyback

  1. The impactful growth of the Company’s finances may or may not be real.
  2. 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

Company Name

Record Date

Buyback Type

BuyBack price
(Per Share)

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