INSUBCONTINENT EXCLUSIVE:
Nearly two dozen companies have announced share buybacks in the past two months to support stock prices in a falling market, as their
managements believe those were trading below the fair value
Though repurchase prices of some of the companies look attractive, analysts advise caution on buying stocks randomly as several recent
buybacks have not helped investors.
Bosch, Oriental Chemicals, Redington, Dhanuka Agritech, Lakshmi Machine Works, Natco Pharma, Triveni
Turbine, Resonance Specialties, SKF India and Tata Investment are among companies that have announced buyback of shares recently.
These
cent of the shares to be bought back is reserved for such shareholders
that have done buybacks so far this year have given a negative return within three months of announcing the buyback
Stocks such as Balrampur Chini Mills, Jagran Prakashan, Unichem Laboratories, Bharat Electronics, Aarti Drugs and eClerx Services declined
record 51 companies have done buyback worth Rs 26,600 crore, according to Prime Database
In the previous year, 50 companies bought back shares worth Rs 55,274 crore.
Buyback of shares is done when the management believes the
cent dividend distribution tax and individuals who receive dividend income in excess of Rs 10 lakh pay a dividend tax of 10 per cent.
