Guest Column: Slow paced share buybacks

Currently there are sixteen buyback offers in the markets there are only five buybacks in which actual bought back amount is atleast 50% of the aggregate announced buyback size.

In the case of remaining eleven buybacks, the actual buyback numbers as of now are quite modest in comparison to the aggregate announced buyback amounts. However, one needs to note that these buybacks have considerable time left before their closure.

Reliance Industries has seen actual buyback of about Rs 51.20 crore in the first month of its buyback programme, in comparison to its aggregate buyback size of about Rs 10,440 crore. That works out to actual buyback size of about 0.49% of the aggregate buyback announced. Also, the actual buyback has happened only on seven trading days till now. However, the company still has considerable time before the closure of their buyback programme on 19th Jan 2013.

(Click here to see the table)

Similarly, modest beginnings were seen in the buybacks of Valiant Communications (1.09%), Gemini Communications (2.75%), Ansal Housing (4.50%), GEECEE (11.49%). However, the companies such as Crisil and Rain Commodities were quite aggressive as they have completed almost 99.08% and 96.75% of their buybacks respectively.

(The Author is Strategist & Head of Research with SMC Global Securities Limited)