Investors should tender in case PSUs buyback shares, say analysts

While a share buyback is a positive development from a near-term perspective, analysts say the move is also a structural positive

After a bumper listing of Rites Limited – a state-owned railway consultancy firm – that has seen the stock rise 26 per cent since its debut on July 2, 2018, the government seems to have changed its mind in favour of buying back shares of public sector enterprises (PSEs) given the volatile markets.

Though a timeline is yet to be finalised, Coal India, NTPC, NALCO, NMDC, BHEL, NHPC, NBCC and Hindustan Aeronautics are among the 13 companies, according to reports, that have been shortlisted for the buyback.

While a share buyback is a positive development from a near-term perspective, analysts