31 Buyback Offers Worth Rs 4,426 Cr Closed In FY14: Report
By PTI
NEW DELHI: Indian firms bought back shares worth over Rs.4,400 crore from public through in 2013-14, achieving just 78 per cent of the target.
According to a report by Prime Database, 31 buyback offers were concluded in 2013-14 with a total acquired sum of Rs.4,426 crore, while the amount on offer was Rs.5,704 crore.
The largest buyback completed was by state-run NHPC for Rs.2,368 crore.
Out of 31 buyback offers, 24 were through the stock exchange route, while the rest were via the tender offer.
In comparison, as many as 26 buyback offers were completed in 2012-13 with a total acquired amount of Rs.4,746 crore. The companies had targeted to repurchase shares to the tune of Rs.12,532 crore during the period.
Buyback involves purchase of outstanding public shares by a firm to reduce the number of shares in the market, leading to increase in promoter holding and improving earnings per share for the future period.
Shareholders can participate either through the tender offer route or by selling shares in the open market.
In an open market offer, firms can buy shares from shareholders without knowing the buyer, while tender offer involves the company writing to its shareholders individually to know their willingness for sale of shares in the buyback.
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