What is Buyback?
A share buyback is a corporate action by the company to repurchase its own listed share to reduce the number of shares available in the stock market or open market. Companies come up with the share buyback for reasons such as to increase the value of remaining shares after the buyback by reducing the supply to the shareholders or we can say the companies controlling the stack in the open market via a buyback.
Understand the Share Buyback
The company is coming up with a Buyback offer to invest in its own entity. Through the buyback offer, the company reduces the number of shares in the market and increases its holding. If a company thinks that its share is undervalued then they come up with a buyback offer to provide its current investors with some good return. If the company stays bullish on its current operations and the business, the buyback will help the company to boost the proportion of earnings. Sometimes the stock price may rise if the same price-to-earnings (P/E) ratio is maintained. There is another reason for the buyback that the shares of the buyback may be offered to the company’s employees and management with stock rewards and stock options. The company files the letter of offer to the SEBI and gets the approval for the share buyback. The company decided the ratio of shares, number of shares, the buyback amount, buyback type, buyback record date for the investors, and open and close dates. As per the buyback schedule company starts the buyback process in the open market.
Buyback Offer Types and How Buyback Works
There are two types of buyback offers such as tender offers and open market offers.
- Tender Offer: In this option, the company offers the shareholders to tender their shares at a premium (price decided by the company). If the investor is eligible for the buyback, they can apply for the same from their Demat or trading accounts. The company buys the shares as per the ratio decided b the company in the buyback offer.
- Open Market Offer: In this option, the company buys its shares from the open market from the exchanges. The shareholders can sell their shares in the time frame given by the company in the buyback offer. The open market buyback offers last for months as they buy the shares from the open market.
Why do Companies go for Share Buyback?
The investors can participate in the buyback offer till the window is open. Generally, the company gives a higher value of the share in the buyback. Let’s see one of the share buyback examples here: If ABC Limited is coming up with a buyback offer, they will make an offer at a price of Rs.1000 against the current price of Rs.600. So basically the investors will get the Rs.400 premium against the holding price. The investors who do not have the stocks in their Demat can buy it before the record date set by the company.
Reasons Why Company Go For Buyback Offer.
- They want to reduce the number of shares in the open market.
- The company feels that the share price is undervalued.
- To improve the Company’s Shareholder values.
- To Boost share price in the open market.
- The company has Additional Cash in Hand.
To be a part of the buyback shareholder might be presented with a tender offer when he or she needs to submit all or a portion of the shares within the given time frame. Companies repurchase the shares from the open market and over the time frame at a certain time or at regular intervals. Company buyback shares with cash in hand or can fund buyback by taking debt as well.
Upcoming Buyback 2022 Offers
Here is the list of recent Buyback 2022 offers. Stay tuned for the latest Share Buyback 2022 offers and stay invested in the primary market.
|Company||Price||Meeting Date||Record Date|
|Mindteck India||₹180||[.]||Open Market|
|ACC||₹2300||15 May 2022||Open Market|
|TCI Express||₹2050||27 May 2022||Open Market|
|Granules India||₹400||[.]||30 Aug 2022|
|Suraj Limited||₹77||[.]||20 Aug 2022|
|Care Ratings||₹[.]||20 Jul 2022||[.]|
|Techno Electric||₹325||11 Jul 2022||Open Market|
|Marksans Pharma||₹60||8 Jul 2022||Open Market|
|SIS Ltd||₹550||29 Jun 2022||[.]|
|Route Mobile||₹1700||28 Jun 2022||Open Market|
|Bajaj Auto||₹4600||27 Jun 2022||Open Market|
|Zydus Lifesciences||₹650||20 May 2022||02 Jun 2022|
|Matrimony.com||₹1150||12 May 2022||04 Jul 2022|
|Avonmore Capital||₹95||01 Jun 2022||15 Jun 2022|
|Birlasoft||₹500||23 May 2022||15 Jul 2022|
|CL Educate||₹170||23 May 2022||Open Market|
|Cigniti Technologies||₹500||18 May 2022||Open Market|
|Asahi Songwon Colors||₹400||19 May 2022||03 Jun 2022|
|Motilal Oswal||₹1100||17 May 202022||27 May 2022|
|SMC Global||₹115||09 May 2022||Open Market|
|Indiamart||₹6250||28 Apr 2022||11 May 2022|
|Sinclairs Hotels||₹143||28 Apr 2022||13 May 2022|
|Sarda Energy & Minerals||₹1500||23 Apr 2022||06 May 2022|
|Gail||₹190||31 Mar 2022||22 Apr 2022|
|Filatex India||₹140||29 Mar 2022||08 Apr 2022|
|Atul Ltd||₹11000||25 Mar 2022||Open Market|
|Pennar Industries||₹50||09 Mar 2022||Open Market|
|TCS||₹4500||12 Jan 2022||23 Feb 2022|
|UPL||₹875||02 Mar 2022||Open Market|
|Gulf Oil Lubricants||₹600||09 Feb 2022||21 Feb 2022|
|FDC Limited||₹475||09 Feb 2022||19 Feb 2022|
|KPR Mill||₹805||27 Jan 2022||19 Feb 2022|
|Mayur Uniquoters||₹650||08 Feb 2022||23 Feb 2022|
|Emami Limited||₹550||03 Feb 2022||Open Market|
|Ajanta Pharma||₹2550||28 Dec 2021||14 Jan 2022|
|James Warren Tea||₹295||–||14 Jan 2022|
|The Great Eastern Shipping||₹333||–||–|
Share Buyback 2021
Here is the list of past Buyback 2021 offers.
|Company||Price||Meeting Date||Record Date|
|Cheviot Company||₹1725||04 Dec 2021||17 Dec 2021|
|Weizmann||₹60||–||10 Dec 2021|
|MOIL Limited||₹205||10 Nov 2021||–|
|AksharChem India||₹590||29 Oct 2021||12 Nov 2021|
|S H Kelkar||₹210||29 Oct 2021||12 Nov 2021|
|MPS Buyback 202021||₹900||27 Oct 2021||17 Dec 2021|
|Nucleus Software||₹700||27 Nov 2021||27 Nov 2021|
|Shriram Pistons||₹1020||–||12 Aug 2021|
|Rishiroop||₹125||27 Aug 2021||09 Sep 2021|
|Kaveri Seeds||₹850||25 Aug 2021||–|
|eClerx Services||₹2850||13 Aug 2021||30 Sep 2021|
|Star Cement||₹150||13 Aug 2021||26 Aug 2021|
|R Systems||₹225||06 Aug 2021||27 Aug 2021|
|Balrampur Chini||₹410||09 Aug 2021||Open Market|
|Tanla Platforms||₹1260||N/A||Open Market|
|Goldiam Intl||₹1200||21 Jul 2021||27 Oct 2021|
|Nath Bio-Genes||₹-||24 Jun 2021||–|
|Gandhi Special Tubes||₹550||22 Jun 2021||31 Aug 2021|
|Navneet Education||₹100||27 May 2021||Open Market|
|Welspun India||₹120||14 May 2021||26 May 2021|
|Infosys||₹1750||14 Apr 2021||Open Market|
|Insecticides India||₹575||30 Mar 2021||Open Market|
|Aarti Drugs||₹1000||19 Mar 2021||01 Apr 2021|
|Quick Heal||₹245||10 Mar 2021||03 May 2021|
|Jagran Prakashan||₹60||02 Mar 2021||–|
|Nava Bharat Ventures||₹100||01 Mar 2021||–|
|Savita Oil Technologies||₹1400||19 Feb 2021||05 Mar 2021|
|SIS Limited||₹550||15 Feb 2021||09 Apr 2021|
|Gujarat Apollo||₹22022||13 Feb 2021||26 Feb 2021|
|Suprajit Engineering||₹320||10 Feb 2021||22 Feb 2021|
|VRL Logistics||₹300||06 Feb 2021||–|
|Atul||₹7250||29 Jan 2021||–|
|Freshtrop Fruits||₹90||29 Jan 2021||–|
|National Aluminium||₹57.50||27 Jan 2021||08 Feb 2021|
|Gail||₹150||15 Jan 2021||28 Jan 2021|
|Bharat Rasayan||₹11500||12 Jan 2021||15 Mar 2021|
|Archidply||₹37||06 Jan 2021||19 Jan 2021|