What is Buyback of Shares? Why do companies buyback?
When a company buys its own shares from investors, it is called buyback. You can also consider it the reverse of an IPO. These shares cease to exist after the buyback process is completed. For buyback mainly two methods – tender offer or open market are used.
Why do companies buyback?
The company decides to buyback for several reasons. The biggest reason is the excess cash in the company’s balance sheet. It is not considered good to have too much cash with the company. It is believed that the company is not able to use its cash. The company uses its excess cash through share buybacks.
Many times the company feels that its share price is low (undervalued), then it tries to increase it through buyback. Apart from this, there can be many reasons for the buyback.
What is the procedure?
First, the company’s board approves the proposal for a share buyback. After this, the company announces the program for the buyback. It mentions record date and buyback period. Record debt means that the investors who hold shares of the company till that day will be able to participate in the buyback.
Live BuyBack of Shares 2020
|Name||Buyback Price||Buyback Type||Board Meeting Date||Record Date|
|RITES Limited BuyBack 2020||₹ 265||Tender||18 Sep 2020||30 Sep 2020|
|Dhanuka Agritech BuyBack||₹ 1000||Tender||22 Jul 2020||28 Sep 2020|
|Triveni Engineering BuyBack 2020||₹ 105||Tender||10/08/20||28/08/20|
|Ramkrishna Forgings BuyBack 2020||₹ 250||Open Market||21/03/20||–|
List of Past BuyBack of Shares
|Name||Buyback Price||Buyback Type||Board Meeting Date||Record Date||Open Date||Close Date|
|Balrampur Chini BuyBack 2020||180||Tender Offer||23/06/20||03/07/20||20/07/20||31/07/20|
|Just Dial Limited BuyBack 2020||700||Tender Offer||30/04/20||03/07/20||04/08/20||17/08/20|
|Tanla Solutions Ltd. BuyBack 2020||81||Tender Offer||22/04/20||10/06/20||01/07/20||14/07/20|
|Coral India Financial||17||Tender Offer||14/02/20||17/04/20||01/06/20||12/06/20|
|Tips Industries Limited||140||Tender Offer||13/02/20||03/04/20||02/06/20||15/06/20|
|GHCL Limited Buyback||250||Open Market||23/01/20||–||–||–|
|Granules India Limited||200||Tender Offer||21/01/20||20/03/20||08/06/20||19/06/20|
|Aster DM Healthcare||210||Tender Offer||09/01/20||24/01/20||20/02/20||05/03/20|
|NIIT Technologies BuyBack 2020||1725||Tender Offer||23/12/19||12/03/20||29/05/20||11/06/20|
|JB Chemicals BuyBack 2020||440||Tender Offer||12/11/19||22/11/19||16/12/19||30/12/19|
|IBull Ventures Ltd.||150||Tender Offer||11/10/19||19/12/19||15/01/20||28/01/20|
|Kaveri Seed Compan..||700||Tender Offer||24/09/19||22/11/19||31/12/19||13/01/20|
|FRESHTROP FRUITS L..||110||Tender Offer||23/08/19||11/10/19||21/11/19||04/12/19|
|NIIT Limited Buyba..||125||Tender Offer||10/08/19||18/10/19||25/11/19||06/12/19|
|Star Cement Limite..||150||Tender offer||21/06/19||05/07/19||22/10/19||05/11/19|
|Smartlink Holdings..||130||Tender Offer||14/06/19||13/08/19||18/10/19||01/11/19|
|Adani Ports Limite..||500||Tender offer||04/06/19||21/06/19||06/09/19||20/09/19|
|Triveni Engineerin..||100||Tender Offer||03/06/19||19/06/19||22/07/19||02/08/19|
|FDC Buyback 2019||350||Tender Offer||24/05/19||07/06/19||01/07/19||12/07/19|
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