“Buy Back of Shares”
|Sr.No. |Topic |Page No. | |1. |Introduction |1 | |2. |Share buyback- An Overview |2 | |3. |Share buyback: Positive Aspects |3 | |4. |Share buyback: Negative Aspects |4 | |5. |Which companies should consider a share buyback |5 | |6. |SEBI Regulations, 1998 for buyback of securities |6 | |7. |Buyback through Tender Offer |7 | |8. |Buyback through Stock Exchanges |10 | |9. |Buyback through Book Building |12 | |10. |Buyback by Private Limited Companies |15 | |11. |Conditions to be followed in case of buyback of shares |17 | |12. |Income Tax Laws for buyback |20 | |13. |Accounting for buyback of shares |21 | |14. |A buyback pricing model |23 | |15. |Dividend or buyback which is better option |24 | |16. |Share buyback & Public Sector Units |27 | |17. |Case Study |28 | |18. |Conclusion |30 | |19. |Bibliography |31 |
Competitive forces with the unleashing of the liberalisation policies have made corporate restructuring as a necessity for survival and growth. Operational, financial and managerial strategies are employed to maintain competitive edge and turnaround a sickened performance. Financial restructuring involves either internal or external restructuring (i.e. Mergers and Acquisitions). In the internal restructuring an existing firm undergoes through a series of changes in terms of composition of assets and liabilities. Section 77A, 77B and 77AA now allow companies to buy back their shares following the recommendations of committee on corporate restructuring, which was set up by the government to propose various strategies to strengthen the competitiveness of the banking and finance sector, companies are now allowed to repurchase their own shares. This will enable the companies to catch up with other developed markets as part of the government's moves to liberalize the local market and hence emerged the concept of SHARE BUY BACK in the Indian corporate scenario. Share Buyback is a financial tool for financial re-engineering. It is described as a procedure that enables a company to purchase shares from the shareholders. The rationale behind...