The upcoming share buybacks in 2025 feature prominent companies, including Prime Securities Ltd and Nava Ltd. These buybacks offer shareholders an opportunity to sell their shares back to the company at attractive prices, potentially benefiting from immediate gains and improved financial ratios.
What Is Buyback Of Shares?
A share buyback involves a company purchasing its own stock from the market, using its available cash reserves. This reduces the total number of outstanding shares, potentially raising the value of remaining shares and improving financial metrics.
List Of Buyback Of Shares In India 2025
Here is a table showcasing the list of share buybacks:
Company Name | Issue Open | Issue Close | Buyback Type | BuyBack price (Per Share) | Issue Size – Shares (Cr) |
Prime Securities Ltd | – | – | Tender Offer | 305 | 0.06 |
Nava Limited | Mar 06, 2025 | Mar 12, 2025 | Tender Offer | 500 | 0.72 |
Introduction of Buyback Of Shares
Prime Securities Ltd
Prime Securities Ltd is a leading financial services company specialising in investment banking and corporate finance. The company provides clients capital market advisory services and fundraising assistance and is known for its efficient operations.
Nava Limited
Nava Limited is a leading company that operates across diverse sectors. It is active in the technology and construction industries and is known for providing high-quality products and solutions to its customers by leveraging the latest technology.
How Does The Buyback Of Shares Work?
A share buyback involves a company purchasing its own stock from the market, using its available cash reserves. This reduces the total number of outstanding shares, potentially raising the value of remaining shares and improving financial metrics.
Buyback Of Shares – FAQs
A buyback of shares is a corporate action where a company purchases its own outstanding shares from the marketplace, reducing the number of shares available and potentially increasing the value of remaining shares.
The main benefits of share buybacks include enhancing shareholder value by increasing earnings per share, improving financial ratios, supporting stock prices, and signaling robust company health.They offer a tax-efficient method to return funds to shareholders compared to dividends.
In India, share buybacks are conducted under SEBI guidelines, either through the open market or a tender offer. Companies allocate funds to repurchase shares, aiming to reduce the outstanding share count and potentially increase the stock value.
After a share buyback, the share price may increase due to the reduced supply of shares and the perception of corporate confidence. However, the actual impact can vary based on market conditions and investor sentiment.
The main disadvantage of share buybacks is that they utilize cash reserves that could be invested in business growth or innovation. Additionally, they can artificially inflate share prices, misleading about a company’s true financial state, and may prioritize immediate shareholder returns over long-term strategic investments.