Buyback Offer With Record detail

What is Buyback Of Shares?

Buyback of shares or stock buyback refers to the corporate action where a company repurchases its own shares from the existing shareholders. During the buyback of shares, the price of shares is usually higher than the market price. Buyback of shares can be done either through the open market or through tender offer route. Under the open market mechanism, the company can buy back its shares from the secondary marker. On the other hand, during buyback of shares via tender offers, shareholders can submit or tender portions of their shares within a stipulated time. Avail the opportunity to earn premium with buyback of shares. The company buyback reasons include:

  1. They want to reduce the number of shares in the open market.
  2. The company feels that the share price is undervalued.
  3. To improve the Company's Shareholder values.
  4. To Boost share price in the open market.
  5. The company has Additional Cash in Hand.

To be a part of buyback shareholder might be presented with a tender offer when he or she needs to submit all or a portion of the shares within the given time frame. Companies repurchase the shares from the open market and over the time frame at a certain time or at regular intervals. Company buyback shares with cash in hand or can fund buyback by taking debt as well. Check out the latest share buyback in 2019 with buyback price and record date.

Buyback Offers 2020-2021

Company Record Date Buyback Price Buy Back Opening Date Buy Back Closing Date
Indian Toners 15-Jan-2021 Rs. 1600 Per ShareUpdate Soon Update Soon
NIIT Jan-2021Rs. 240 Per ShareUpdate Soon Update Soon
IIFL Securities NARs. 54 Per Share30-12-2020NA
Industrial & Prudential 01-Jan-2021 Rs. 1200 Per ShareUpdate Soon Update Soon
Wipro Ltd 11-Dec-2020Rs. 400 Per Share29-12-202011-01-2021
EIL India 01-Jan-2021 Rs. 160 Per ShareUpdate Soon Update Soon
24-Dec-2020 Rs. 35 Per ShareUpdate Soon Update Soon
Gail India 2020 - 2021 Update Soon Update Soon Update Soon
Garware Tech 11 Dec 2020 Rs.2300 Per Share
Kanchi Karpooram 04 Dec 2020 Rs.405 Per Share
Sreeleathers 04 Dec 2020 Rs.160 Per Share
IIFL Securities Nov 2020 Rs.54 Per Share
Mayur Uniquoters 25 Nov 2020 Rs.400 Per Share
NMDC 23 Nov 2020 Rs.105 Per Share
Asahi Songwon 20 Nov 2020 Rs.330 Per Share
Ajanta Pharma 13 Nov 2020 Rs.1850 Per Share
HPCL 21 Nov 2020 Rs.250 Per Share
NTPC 13 Nov 2020 Rs.115 Per Share
Majesco 12 Nov 2020 Rs.845 Per Share
KIOCL 30 Oct 2020 Rs.110 Per Share
Cosmo Film 09 Nov 2020 Rs 576 Per Share

Who can apply for Buyback?

There are different requirements for buyback of stock which vary with residential status:

  • If you fall under the category of Resident Indians and HUFs, you can apply for share buyback if you have registered with HDFC securities Ltd for online trading and investment transactions.
  • If you are a Non-Resident India with PIS NRO account and PIS NRE account, you can bid in individual category for the stock buyback issue in case you have received a tender offer letter from the company or RTA to participate.

Can customer modify the orders?

Yes, customers can modify the buyback orders.

  • Lower Modification: In this case, the additional buyback shares will be on hold till settlement.
  • Upper Modification: In this case, you will have to place a new buyback order for the additional shares.

Can customer cancel the orders?

Yes, customers can cancel the order. However, they can cancel the buyback orders only before the end date of the issue. There shares will be released after the settlement cycle is over.

How will the funds payout happen?

Funds payout for buyback issue will be directly credited by the exchange in respective bank account of the customer.

In case of failure of payout by exchange, HDFC securities Ltd will make the payout deducting the brokerage and statutory charges levied which will be the final payout to the customer.

In case the exchange directly credits the funds payout successfully, HDFC securities Ltd will debit the charges of brokerage including all statutory charges as per contract note.

In case of NRI customer, funds payout for buyback issues is received by HDFC securities ltd from the respective exchanges. Post deduction of brokerage, statutory levies the same is credited to respective NRI customer’s relevant linked HDFC bank account by HDFC bank after deducting the TDS.

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