When you’re part of a buyback as a shareholder, you might get a tender offer. That means you have to give back some or all of your shares within a certain time. Companies buy back shares either gradually from the market or at regular times. They usually use cash they have or borrow money to fund the buyback.
Upcoming Buyback of Shares in 2024 & Current Buyback Share in India
Here is the list of Upcoming Buyback 2024 offers. Stay tuned for the latest Buyback of shares offer and stay invested in the primary market. Read More About IPO GMP or Grey Market Premium
| Company Name | Record Date | Open | Close | Price |
| Ladderup Finance | Sept 6, 2024 | TBA | TBA | ₹44 |
| Aarti Drugs | Sept 5, 2024 | TBA | TBA | ₹900 |
| Transport Corporation Of India | Sept 4, 2024 | TBA | TBA | ₹1200 |
| Nucleus Software | Sept 3, 2024 | TBA | TBA | ₹1615 |
| Indian Toners and Developers | Aug 30, 2024 | TBA | TBA | ₹450 |
| Weizmann | Aug 30, 2024 | TBA | TBA | ₹160 |
| Suprajit Engineering | Aug 27, 2024 | TBA | TBA | ₹750 |
| Technocraft Industries | Aug 27, 2024 | TBA | TBA | ₹4500 |
| KDDL | Aug 27, 2024 | TBA | TBA | ₹3700 |
| VLS Finance | Aug 26, 2024 | TBA | TBA | ₹380 |
| Mayur Uniquoters | Aug 23, 2024 | TBA | TBA | ₹800 |
| Symphony | Aug 21, 2024 | TBA | TBA | ₹2500 |
| AIA Engineering | Aug 20, 2024 | TBA | TBA | ₹5000 |
| Chaman Lal Setia Exports | Aug 19, 2024 | TBA | TBA | ₹300 |
| CERA Sanitaryware | Aug 16, 2024 | TBA | TBA | ₹12000 |
| Savita Oil Technologies | Aug 16, 2024 | TBA | TBA | ₹675 |
| Dhanuka Agritech | Aug 16, 2024 | TBA | TBA | ₹2000 |
| TTK Prestige | Aug 14, 2024 | TBA | TBA | ₹1200 |
| Navneet Education | Aug 13, 2024 | TBA | TBA | ₹200 |
| Indus Towers | Aug 9, 2024 | TBA | TBA | ₹465 |
| Welspun Living | Aug 5, 2024 | 9 Aug, 2024 | 16 Aug, 2024 | ₹220 |
| Aurobindo Pharma | 30 July, 2024 | TBA | TBA | ₹1460 |
| eClerx Services | 4 July, 2024 | 9 July, 2024 | 15 July, 2024 | ₹2800 |
| Bajaj Consumer | 2 July, 2024 | 9 July, 2024 | 15 July, 2024 | ₹290 |
| Godawari Power & Ispat | 28 June, 2024 | TBA | TBA | ₹301 |
| Cheviot Company | 14 June, 2024 | 21 June, 2024 | 27 June, 2024 | ₹1800 |
| Ajanta Pharma | 30 May, 2024 | TBA | TBA | ₹2771 |
| Tips Industries | 22 April, 2024 | 26 April, 2024 | 3 May, 2024 | ₹625 |
| Anand Rathi | 12 April, 2024 | TBA | TBA | ₹4450 |
| Freshtrop Fruits | 2 April, 2024 | 8 April, 2024 | 15 April, 2024 | ₹175 |
| Dwarikesh Sugar Industries | 20 Mar, 2024 | 26 Mar, 2024 | 2 April, 2024 | ₹105 |
| Bajaj Auto | 29 Feb, 2024 | 6 Mar, 2024 | 13 Mar, 2024 | ₹10,000 |
| Garware Technical | 12 Mar, 2024 | 18 Mar, 2024 | 25 Mar, 2024 | ₹3800 |
| Shervani Industrial | 7 Mar, 2024 | 13 Mar, 2024 | 20 Mar, 2024 | ₹510 |
| Zydus Lifesciences | 23 Feb, 2024 | TBA | TBA | ₹1,005 |
| Kaveri Seed | 23 Feb, 2024 | TBA | TBA | ₹725 |
| Orbit Exports | 13 Feb, 2024 | TBA | TBA | ₹250 |
| Arnold Holdings | 25 Jan, 2024 | 1 Feb, 2024 | 7 Feb, 2024 | ₹21 |
| Rajoo Engineers | 31 Jan, 2024 | 6 Feb, 2024 | 12 Feb, 2024 | ₹210 |
| Chambal Fertilisers | 18 Jan, 2024 | 24 Jan, 2024 | 31 Jan, 2024 | ₹450 |
| Dhampur Sugar Mills | 17 Jan, 2024 | 23 Jan, 2024 | 30 Jan, 2024 | ₹300 |
| Elegant Marbles | 5 Jan, 2024 | 11 Jan, 2024 | 17 Jan, 2024 | ₹385 |
| Atul Buyback 2023 | N/A | Nov 21, 2023 | Feb 23, 2024 | ₹7,500 |
What is the Buyback of a Stock?
A share buyback happens when a company decides to buy back its shares from the stock market. This reduces the number of available shares for investors.
Companies do this for various reasons. One big reason is to make the remaining shares more valuable. When there are fewer shares out there, each one becomes more valuable. So, it’s like the company is controlling its stock market presence by buying back its shares.
How does Buyback work?
Let’s understand the Buyback of stock in simple six steps…
- Decision: The company’s management decides that it wants to buy back some of its own shares. They might do this for various reasons, like boosting the value of remaining shares or using excess cash.
- Announcement: The company announces its intention to buy back shares publicly. This can affect the stock price, as investors may see it as a positive signal about the company’s prospects.
- Execution: The company starts buying back shares on the open market. It can do this through various methods, such as purchasing shares through a broker or a tender offer directly to shareholders.
- Payment: When the company buys back shares, it pays the shareholders the market price for those shares. This can provide shareholders with a cash return on their investment if they choose to sell their shares back to the company.
- Reduction of Shares: The bought-back shares are typically retired, meaning they are no longer outstanding. This reduces the total number of shares available in the market.
- Impact: With fewer shares available, the earnings per share (EPS) and other metrics can improve, potentially making the remaining shares more valuable. However, the impact on the stock price can vary depending on market conditions and investor sentiment.
Why do Companies go for Share Buyback?
The investors can participate in the buyback offer till the window is open. Generally, the company gives a higher value of the share in the buyback. Let’s see one of the share buyback examples here: If ABC Limited is coming up with a buyback offer, they will make an offer at a price of Rs.1000 against the current price of Rs.600. So basically the investors will get the Rs.400 premium against the holding price. Investors who do not have the stocks in their Demat can buy it before the record date set by the company. Top Upcoming IPO and Subscription Status
Reasons Why Companies Go For Buyback Offers.
- They want to reduce the number of shares in the open market.
- The company feels that the share price is undervalued.
- To improve the Company’s Shareholder values.
- To Boost share price in the open market.
- The company has Additional Cash in Hand.
Example of Buyback
Suppose ABC Limited is planning a buyback offer, proposing a price of Rs.1200, compared to the current market price of Rs.600. This means investors could receive a premium of Rs.600 per share over their holding price. Those who don’t already have the stocks in their Demat accounts can purchase them before the company’s set record date.
For reference see the list of upcoming buyback stocks.
FAQs of Buyback
A share buyback, also known as a stock repurchase, is when a company purchases its own shares from the open market or directly from shareholders.
Companies may buy back their own shares for various reasons, including boosting the value of remaining shares, signalling confidence in the company’s future, utilizing excess cash, or offsetting dilution from employee stock options.
Share buybacks can benefit shareholders by potentially increasing the value of remaining shares through reduced supply. Additionally, shareholders who sell their shares back to the company during a buyback may receive a cash payment.
Critics argue that share buybacks can sometimes be used to artificially inflate stock prices or benefit company executives with stock-based compensation, potentially at the expense of long-term investment in areas such as research and development or capital expenditures.
Entitlement ratio simply define the minimum ratio of shares that a company would need to purchase from its shareholders. For example, an entitlement ratio of 5/51 means that the company would purchase at least 5 shares from a shareholder who owns 51 shares. Nevertheless, the company may end up purchasing more shares from such shareholders if other investors don’t tender their shares.
Record date defines an investor’s eligibility to participate in a share buyback. If an investor wants to participate in a buyback, s/he needs to have the shares in his/her demat account as on the record date.
