The Buyback will be on a proportionate basis from the shareholders of the Company, through the 'Tender Offer' route
Thus far in CY20, 20 companies have announced buyback of their shares, of which, 14 firms have proposed to buyback from open market route
Could disallow retail investments directly and through MFs in the instrument
Earlier in the week, Emami and Sterlite Technologies also disclosed their intention to buyback shares
While more firms may resort to buybacks, industries urge that government review tax on this investor rewarding method
Experts blame the change in tax dynamics for the sharp drop in buybacks
India this month imposed a levy on its companies' share purchases
Infosys, Asia's second-largest software exporter, last month said it would buy Rs 82.6 billion of its own stock
S&P Global Ratings Tuesday said corporate activities that are designed to support the government coffers -- such as share buyback -- by PSUs are 'credit negative' for such entities. In the past three months, 10 public sector undertakings (PSUs) have announced or executed buybacks for a cumulative amount of Rs 15,000 crore, which will count toward the government's target of Rs 80,000 crore from disinvestment of state-owned entities. "S&P Global Ratings foresees credit risks at Indian SOEs (state-owned enterprises) from corporate activity designed to support the Indian government's budgetary coffers," the US-based rating agency said in a statement. The impact on the respective companies can vary depending on the size of cash outflow, it added. "Extracting cash from SOEs decreases their financial flexibility in a stress scenario, which -- at least over the short term -- is credit negative at the firm level," S&P said. It said while extraction of existing excess capital in the
Accenture and IBM conduct share repurchase every year as part of their plans to return back free cash to shareholders
According to the agency, TCS and Infosys have cash balances of $6.6 billion and $4.4 billion
16 launched in 2015-16, up from 10 in 2014-15