BUYBACK OF

SECURITIES

Guided by Mr. Himal Parikh

Submitted by Prashant Maharshi
 WHAT IS BUYBACK???

Process by a company to bring their

shares back from the shareholders.

Where shareholders sell their shares

directly to the company.
 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.
 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.
SOME CASE
STUDIES ON
BUYBACK
 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.
 O/s Shares beforeCRISIL Ltd.
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 ,
 O/s ZEE ENTERTAINMENT
Shares before buyback
Ltd.
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 ,
 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.
 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.
 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.
 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.
 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 ,
Thank You