Buyback of shares by companies is a relatively new concept in India. There are several reasons as to why a company might Buyback its own shares: (a) it gives the company flexibility to make adjustments in the capital structure, (b) company can boost operating profits and earning per share, (c) it deters an impending takeover bid, (d) company can correct perceived undervaluation of its shares and (e) it can arrest downward trend in shares prices. In ...
