Get the latest news about current and upcoming share buybacks in India. This list of latest buyback offers is regularly updated with vetted corporate updates from stock exchanges and SEBI.
Recent and Upcoming Share Buybacks (Tender)
|Company Name||Record Date||Buyback Dates||Buyback Price (INR)||Premium (%)|
|eClerx Services||27 Dec||3 - 16 Feb||1,750||27.3|
|Technocraft Industries||30 Dec||1 - 14 Feb||1,000||20.9|
|Kama Holdings||23 Dec||31 Jan – 13 Feb||14,500||6.3|
|Tips Industries||30 Dec||27 Jan - 9 Feb||2,600||42.6|
|Cosmo First||14 Dec||27 Jan - 9 Feb||1,070||29.2|
|Triveni Turbine||23 Dec||17 - 31 Jan||350||23.7|
|Welspun Enterprises||13 Feb||Coming soon||200||20.2|
|Abirami Financial||27 Jan||Coming soon||28||22.9|
|Softsol India||13 Jan||Coming soon||170||7.7|
|Jagran Prakashan||6 Jan||Coming soon||75||2.7|
|Triveni Engineering||23 Dec||Coming soon||350||26.3|
|Hinduja Global||Coming soon||Coming soon||1,700||20.9|
Recent and Upcoming Share Buybacks (Open Market)
|Company Name||Buyback Dates||Buyback Price|
|KDDL||25 Jan - 24 July||1,200||12.4|
|VLS Finance||16 Jan - 14 Jul||200||24.7|
|IEX||11 Jan - 10 Jul||200||32.9|
|Paytm||21 Dec - 19 Jun||810||50.1|
|Freshtrop Fruits||20 Dec - 19 Jun||115||22.0|
|Bajaj Consumer||19 Dec - 16 Jun||240||33.6|
|Infosys||7 Dec - 6 Jun||1,850||30.3|
What is a share buyback?
A share buyback, aka share repurchase, is a financial strategy employed by companies to reduce the number of outstanding shares in the secondary markets i.e. stock markets. It is important to note that nowadays, unlisted startups also engage in share buybacks. Nevertheless, this article is all about share buybacks in the listed space.
Share buybacks are typically accomplished by purchasing shares from existing shareholders, either through the open market or through a tender offer. In simple words, buybacks perform opposite function of IPOs where a company issues shares to investors.
Share buybacks are often undertaken when the management feels the true value of the business is not reflected in the stock price. As such, buybacks act as catalysts to boost stock prices. Investors can participate in share buybacks of fundamentally sound companies and can get handsome returns in a relatively short span of time.
What is the need of stock buybacks? What do companies gain by purchasing their own shares?
There are several reasons why a company might opt to buy back its own shares. Here are the three most important reasons:
- Buybacks enhance the company’s financial performance as the shares purchased are eventually cancelled. This reduces the number of shares outstanding, in turn boosting the company’s earnings per share (EPS). The cascading effect of this event is seen in valuation metrics such as Price/Earnings ratio which are regularly tracked by investors.
- Share buybacks are often undertaken when the management feels the true value of the business is not reflected in the stock price. A company seen as purchasing its own shares at a premium to market prices is generally viewed in the positive light by investors. As such, buybacks act as catalysts to boost stock prices.
- Companies also undertake stock buybacks as a measure to distribute excess cash to shareholders. If a company has more cash on hand than it needs to operate its business, it may choose to utilize some of that cash to buy back its own shares. With the introduction of Finance Act 2020 and taxability of dividends in the hands of shareholders, investors have started preferring buybacks given the tax benefits associated with this route.
Investors can participate in share buybacks of fundamentally sound companies and can get handsome returns in a short span of time.
This is a developing page. Please share your feedback in the comments section and let us know what else you would like us to cover in share buybacks.
Latest Buybacks FAQs
What is entitlement ratio in buybacks?
Entitlement ratio simply define the minimum ratio of shares that a company would need to purchase from its shareholders. For example, an entitlement ratio of 5/51 means that the company would purchase at least 5 shares from a shareholder who owns 51 shares. Nevertheless, the company may end up purchasing more shares from such shareholders if other investors don’t tender their shares.
What is record date in share buybacks?
Record date defines an investor’s eligibility to participate in a share buyback. If an investor wants to participate in a buyback, s/he needs to have the shares in his/her demat account as on the record date.
Once approved, how long can a company conduct a buyback?
In India, buybacks need to be approved through a Special Resolution or a Board Resolution. A company must complete the buyback within a period of one year from the approval date.
What is acceptance ratio in stock buybacks?
Acceptance ratio denotes the number of shares a company purchases from a shareholder against his/her entitlement.