Page 6 - Buyback

Buyback offers touch Rs 300 billion in three months

The buyback route, experts say, is a better way to reward shareholders rather than paying a hefty dividend, as the latter is subject to tax

28 companies announce buyback plans aggregating Rs 213 billion

While Mcleod Russel, ADF Foods, Indiabulls Real Estate, DCM Shriram and BSE have announced buyback through open market route, the remaining 23 companies plan to buy back their shares via tender offers

Companies blaze new route to buyback, skip narrower one

India Inc is increasingly opting for the 'tender route' buyback instead of the traditional 'open market' route. Between 2006 and 2014, nearly 80 per cent of the buybacks were done through the 'open market' route. Since 2015, 95 per cent of the buybacks have been through the 'tender route'. Even the recent mega buyback of Tata Consultancy Services (TCS) has been proposed to be done through the 'tender route'.Change in regulatory and taxation framework has been the key factor behind the shift.The sharp rise in tender buybacks have coincided with the government's decision to levy 10 per cent additional taxes on dividend at the hands of individuals."Over the years, the primary motive of buybacks has changed. Earlier buybacks were used to send a signal to the market that the stock is undervalued. In the current context and with change in tax code, companies are using buyback as a tax efficient way of distribution to shareholders. The change in mechanism being used largely reflects the ...

Why buybacks are not favoured by top Indian IT firms

SEBI made changes to the buyback norms, dividend distribution tax is up 20% making it inefficient

India Inc's share buyback programmes gather pace

Around a dozen firms announce buybacks worth Rs 20,000 crore so far in 2016-17

7 companies approve share buyback in four months

Of the seven that have announced buyback plans, four companies including Dr Reddy's Laboratories and Wipro, are from the benchmark Nifty 50 index

Buybacks return in 2016

With some plans already announced and market conditions more conducive, experts feel more of such offers possible

Corp Affairs Ministry amends norms related to buyback offers

Entities can take into consideration unaudited accounts while making calculation for buyback offers