Upcoming Buyback and Recent Share Buyback 2023 NSE - BSE
To participate in the buyback, a shareholder may receive a tender offer requiring them to submit all or a portion of their shares within the specified timeframe. Companies repurchase shares from the open market over a designated period, either at specific times or on a regular basis. These share buybacks can be financed using available cash reserves or by acquiring debt.
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Upcoming and Live Buyback Shares in 2023
Presenting the roster of forthcoming buyback offers in 2023. Keep yourself updated for the most recent share buyback opportunities and maintain your involvement in the primary market.
| Company Name | Price | Start Date | End Date |
|---|---|---|---|
|
Piramal Enterprises |
Rs. 1250 |
30-Aug-2023 |
06-Sep-2023 |
|
Indiamart |
Rs.4000 |
31-Aug-2023 |
06-Sep-2023 |
|
FDC |
Rs.4000 |
31-Aug-2023 |
06-Sep-2023 |
|
KRBL |
Rs.500 |
31-Aug-2023 |
06-Sep-2023 |
|
CL Educate |
Rs.94 |
21-Aug-2023 |
28-Nov-2023 |
What is Buyback?
A share buyback entails a company repurchasing its own publicly listed shares, aiming to diminish the quantity of shares accessible in the stock or open market. Companies initiate share buybacks with the intention of boosting the value of the remaining shares post-buyback, achieved by curbing supply to shareholders. Essentially, companies gain influence over their stock’s availability in the open market through this buyback mechanism.
Understand the Share Buyback
The company is introducing a buyback proposal to invest in its own enterprise. This initiative aims to decrease the volume of shares available in the market while augmenting its ownership stake. When a company perceives its shares as undervalued, it may implement a buyback offer to yield favorable returns for existing investors. By demonstrating confidence in its ongoing operations and business trajectory, the company’s buyback strategy can contribute to an enhanced proportion of earnings.
At times, the stock price has the potential to increase if the company maintains a consistent price-to-earnings (P/E) ratio. Another motivation behind conducting a buyback is to allocate the repurchased shares to the company’s employees and management through stock rewards and stock options. The company submits a letter of offer to the SEBI for approval of the share buyback. Various factors such as the proportion of shares, the quantity of shares, the buyback funds, the type of buyback, the date on which the buyback is recorded for investors, as well as the commencement and conclusion dates are determined by the company. Following the outlined buyback timeline, the company initiates the buyback process within the open market.
Buyback Offer Types and How Buyback Works
Two categories of buyback offers exist: tender offers and open market offers.
Tender Offer: Within this approach, the company invites shareholders to tender their shares at a premium price, determined by the company. Eligible investors can apply for the buyback through their Demat or trading accounts. The company then purchases the shares based on the predetermined ratio outlined in the buyback offer.
Open Market Offer: Under this alternative, the company acquires its own shares from the open market via exchanges. Shareholders have the opportunity to sell their shares within the timeframe specified by the company in the buyback offer. Open market buyback offers extend over several months, during which shares are procured from the open market.
Why do Companies go for Share Buyback?
Investors have the opportunity to engage in the buyback offer as long as the designated window remains accessible. Typically, the company provides an elevated value per share during the buyback period. To illustrate this, consider a share buyback scenario: Suppose ABC Limited introduces a buyback offer, extending an offer price of Rs. 1000 compared to the present market price of Rs. 600. Essentially, investors stand to gain a premium of Rs. 400 over their holding price. Those who lack the stocks in their Demat account can purchase them before the company’s established record date.
Reasons Why Companies Go For Buyback Offers.
- Their intention is to decrease the quantity of shares available in the open market.
- The company believes the share price is undervalued.
- To improve the Company’s Shareholder values.
- Elevating the Share Price in the Open Market.
- The company possesses extra available funds.
Frequently Ask Questions ?
A buyback, also known as a share repurchase or stock buyback, is a corporate action in which a company purchases its own shares from the open market or from its existing shareholders. This process effectively reduces the number of outstanding shares in the company, making each remaining share represent a larger portion of ownership in the company.
There are typically two main types of buyback offers that companies can use to repurchase their own shares
1. Open Market Buyback
2. Tender Offer Buyback
The buyback record date, also known as the record date for a share repurchase or buyback program, is a crucial date used by a company to determine which shareholders are eligible to participate in the buyback. This date is important in the context of a tender offer buyback, which is a structured process where shareholders are invited to sell their shares back to the company at a predetermined price.