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||Open Date||Close Date||Live Subscription|
|Emami Limited Buyback 2020||300||Open Market||27/03/20||26/09/20||–|
|Ramkrishna Forgings Limited Buyback 2020||250||Open Market||03/04/20||27/09/20||–|
|Motilal Oswal Financial Services Limited Buyback 2020||650||Open Market||01/04/20||30/09/20||–|
|Dalmia Bharat Limited Buyback 2020||700||Open Market||03/04/20||01/10/20||–|
|Delta Corp Limited Buyback 2020||100||Open Market||08/04/20||07/10/20||–|
List of Past BuyBack of Shares
|Name||Buyback Price||Amount Invested||Acceptance Ratio||Total Profit||Final Return|
|Aarti Drugs Limited Buyback Offer 2018||875||169860||12.82%||-39413||-23.00%|
|Bharat Electronics Limited Buy Back Of..||182.5||185205||9.19%||-28500||-15.39%|
|MOIL Limited Buyback Offer Feb 2018||240||183333||35.00%||-7730||-4.22%|
|Unichem Laboratories Limited Buyback o..||430||172093||35.00%||-16554||-9.62%|
|Balrampur Chini Mills Limited Buyback ..||150||152000||10.00%||-78012||-51.32%|
|FDC Ltd Buyback Offer Feb 2018||350||154285||6.00%||-9072||-5.88%|
|Alembic Limited Buyback Offer Jan 2018||80||162500||18.36%||-15800||-9.72%|
|Mangalam Organics Limited Buyback Offe..||230||178260||100.00%||21725||12.29%|
|Paushak Limited Buyback Offer Jan 2018||1700||171764||60.00%||16750||9.75%|
|Smartlink Network Systems Limited Buyb..||120||175000||100.00%||24495||14.00%|
|Netlink Solutions (India) Ltd Buyback ..||17||76470||100.00%||120825||158.00%|
|Akzo Nobel India Limited Buyback Apr 2..||2100||180500||89.00%||16190||8.97%|
|Jagran Prakashan Limited Buyback Offer..||195||174358||31.50%||-22135||-12.70%|
|Goldcrest Corporation Limited BuyBack ..||75||160000||100.00%||40005||25.00%|
|Kaveri Seed Company Limited Buyback Ma..||675||149480||62.50%||68513||45.83%|
|Tata Consultancy Services Limited (TCS..||2100||175750||100.00%||23750||13.51%|
|HCL Technologies Limited BuyBack 2018||1100||182086||100.00%||16471||9.05%|
|Navneet Education Limited BuyBack 2018||160||160000||26.00%||-4400||-2.75%|
|Weizmann Forex Limited BuyBack offer J..||702||144729||100.00%||55096||38.07%|
|J. B. Chemicals & Pharmaceuticals Limi..||390||169000||37.50%||2212||1.31%|
|Redington (India) Limited Buyback 2018||125||176000||35.00%||-15520||-8.82%|
|NLC India Limited Buyback offer 2018||88||193600||100.00%||15400||8.00%|
|NALCO Buyback offer 2018||75||171600||53.87%||12573||7.39%|
|Mphasis Buyback offer 2018||1350||170200||22.00%||-12480||-8.00%|
|BHEL Buyback 2018||86||158100||52.75%||26464||16.73%|
|NHPC Limited Buyback offer 2018||28||189000||63.00%||266||0.14%|
|Triveni Turbine Limited Buyback Offer ..||150||133900||54.36%||32588||24.33%|
|KG Denim Limited Buyback offer 2018||40||180000||100.00%||20000||11.11%|
|IOC Buyback 2018||149||183892||100.00%||16104||8.75%|
|SKF India Limited Buyback 2018||2100||161500||100.00%||38000||23.52%|
|Dhanuka Agritech Limited Buyback Offer..||550||143500||75.85%||36335||25.32|
|ONGC Limited Buyback 2018||159||184905||100.00%||15084||8.16%|
|TATA Investment Corporation Limited Bu..||1000||165000||66.30%||23878||14.47%|
|Bosch Limited Buyback Offer 2018||21000||189000||81.60%||8000||4.23%|
|Oil India Limited Buyback offer 2018||215||180000||50.00%||-4050||-2.25%|
|Shanthi Gears Buyback 2018||140||188496||100||11424||6.06%|
|Aarti Drugs Limited Buyback Offer 2019||900||147630||7.31||-11483||-7.77%|
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