Buyback

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Buyback

  1. 1. BUYBACK OF SECURITIES Guided by – Mr. Himal Parikh Submitted by – Prashant Maharshi
  2. 2. WHAT IS BUYBACK???• Process by a company to bring their shares back from the shareholders.• Where shareholders sell their shares directly to the company.
  3. 3. SEBI GUIDELINES FOR BUYBACK• It should be authorized by the articles of association of the company.• The buy back is or less than 25 percent of the total paid up equity share capital and free reserves• The ratio of debt owned by the company is not more than twice the capital and its free reserves after such buy back.• All the shares or other specified securities for buy back are fully paid up.• The amount to be invested under buyback.
  4. 4. WHY BUYBACK IS DONE???• To return surplus cash to shareholders• To increase the underlying share value• To support the share prices during temporary weakness• To achieve or maintain a target capital structure• To prevent or inhibit unwelcome take-over bids• To increase promoters holdings• To increase earnings per share• In fact the best strategy to maintain the share price in a bear run is to buy back the shares from the open market at a premium over the prevailing market price.
  5. 5. SOME CASE STUDIES ON BUYBACK
  6. 6. GEMINI COMMUNICATIONS• O/s Shares before buyback – 106,898,000 equity shares @ Rs. 1 each.• O/s Shares to be bought back – Minimum - 1100000 equity shares. Maximum - 11000000 equity shares.• O/s Shares of buyback successful - 6618738 equity shares.• Record date – 24 September, 2012.• Buyback opening date – 27 January, 2012.• Buyback closing date – 30 April, 2012.• Maximum buyback price – Rs. 45.• Amount for buyback and offer type – Open market, Rs. 30 cr.
  7. 7. CRISIL Ltd.• O/s Shares before buyback – 70,968,440 equity shares @Rs. 1 each.• O/s Shares to be bought back – Minimum - 240000 equity shares. Maximum - 800000 equity shares.• O/s Shares of buyback successful – 910000 equity shares.• Record date – 25th April, 2012.• Buyback opening date – 26 December, 2011.• Buyback closing date – 30 December, 2012.• Maximum buyback price – Rs. 1000• Amount for buyback and offer type – Open market , Rs. 80 cr.
  8. 8. ZEE ENTERTAINMENT Ltd.• O/s Shares before buyback – 958,770,077 equity shares @Rs. 1 each.• O/s Shares to be bought back – Minimum - 5,000,000 equity shares. Maximum - 20,000,000 equity shares.• O/s Shares of buyback successful – 19,372,853 equity shares.• Record date – N.A.• Buyback opening date – Opening – 23 April, 2012• Buyback closing date – N.A.• Maximum buyback price – Rs. 140.• Amount for buyback and offer type – Open market , Rs. 280 cr.
  9. 9. MONNET ISPAT & ENERGY Ltd.• O/s Shares before buyback – 64,337,807 equity shares.• O/s Shares to be bought back – Minimum - 600,000 equity shares. Maximum - 2,000,000 equity shares.• O/s Shares of buyback successful – 1,286,259 equity shares.• Record date – 21 December, 2012.• Buyback opening date – 21 March, 2012.• Buyback closing date – 21 December, 2012.• Maximum buyback price – Rs. 500.• Amount for buyback and offer type – Open market , Rs. 100 cr.
  10. 10. RELIANCE INDUSTRIES Ltd.• O/s Shares before buyback – 3,274,722,771 equity shares.• O/s Shares to be bought back – Minimum - 30,000,000 equity shares. Maximum - 120,000,000 equity shares.• O/s Shares of buyback successful – 120,000,000 equity shares.• Record date – 20 January, 2012.• Buyback opening date – 07 February, 2012• Buyback closing date – 19 January, 2012• Maximum buyback price – Rs. 870.• Amount for buyback and offer type – Open market , Rs. 10,440 cr.
  11. 11. RAIN COMMODITIES Ltd.• O/s Shares before buyback – 354,172,895 equity shares.• O/s Shares to be bought back – Minimum - 6,000,000 equity shares. Maximum - 10,000,000 equity shares.• O/s Shares of buyback successful – 8,536,585 equity shares.• Record date – 03 April, 2012.• Buyback opening date – 14 November, 2011.• Buyback closing date – 30 April, 2012.• Maximum buyback price – Rs. 41.• Amount for buyback and offer type – Open market , Rs. 35 cr.
  12. 12. JK LAKSHMI CEMENT• O/s Shares before buyback – 122,358,924 equity shares @Rs. 10.• O/s Shares to be bought back – Minimum – N.A. Maximum – N.A.• O/s Shares of buyback successful – 1.39 Crore shares of Rs. 5 each.• Record date – N.A.• Buyback opening date – 26 March, 2012.• Buyback closing date – 6 February, 2012.• Maximum buyback price – Rs. 70.• Amount for buyback and offer type – Open market , Rs. 98 cr.
  13. 13. SASKEN COMMUNICATION TECHNOLOGIES Ltd.• O/s Shares before buyback – N.A.• O/s Shares to be bought back – Minimum – 1,450,000 equity shares Maximum – 5,800,000 equity shares.• O/s Shares of buyback successful – 4,804,444 equity shares.• Record date – N.A.• Buyback opening date – May 21, 2012.• Buyback closing date – April 22, 2013.• Maximum buyback price – Rs. 180.• Amount for buyback and offer type – Open market , Rs. 8,648 lakhs.
  14. 14. Thank You

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