WHAT IS BUY BACK OF SHARES ? | பங்குகளை திரும்ப வாங்குவது என்றால் என்ன?

 

WHAT IS THE BUYBACK OF SHARES?:

As the name says buyback of shares, is nothing but buying the own shares of a company from its shareholders for a premium value. Mostly, the premium value will be higher than its current market price. This process is known as the Buyback of Shares.

REASONS FOR BUYBACK OF SHARES:

1. To increase the promoter holding of a company.
2. Sometimes the management of the company has some concerns that the stock is still undervalued. In this case, they buy back the shares.
3. To increase the share price.
4. To reduce the shareholding in the market.
5. Plan to issue the same shares again at a higher price in the future.

The company with available cash reserves, surplus reserves, unused cash, etc... they are willing to buy back the shares at a higher price. Now, from the shareholder's perspective, they need to evaluate certain things like

1. Why is the company doing it?
2. What is the need for buyback now?
3. Is the company financially good?
4. Is it worth selling the share to the company for the premium value? etc...

Basically, Buyback will benefit more to the company more financially, It is the decision of the shareholder to really sell the share to the company. With proper analysis, one should make a decision whether an investor can accept the buyback or not.

DISCLAIMER:-

The content of this site is only for educational purpose. I am not SEBI Registered. The motive of this site is to share my knowledge on share market to new budding investors and others who are learning about stock market

My Kind request to my site viewers, Before taking any decision please do self analysis, consult or discuss with Your financial Advisor .

மறுப்பு:-

இந்த தளத்தின் உள்ளடக்கம் கல்வி நோக்கத்திற்காக மட்டுமே. நான் செபியில் பதிவு செய்யப்படவில்லை. இந்த தளத்தின் நோக்கம், பங்குச் சந்தையைப் பற்றிய எனது அறிவை புதிய வளரும் முதலீட்டாளர்கள் மற்றும் பங்குச் சந்தையைப் பற்றி அறிந்துகொள்ளும் மற்றவர்களுக்குப் பகிர்வதாகும்

எனது தள பார்வையாளர்களுக்கு எனது அன்பான வேண்டுகோள், எந்தவொரு முடிவையும் எடுப்பதற்கு முன், சுய பகுப்பாய்வு செய்யுங்கள், ஆலோசனை செய்யுங்கள் அல்லது உங்கள் நிதி ஆலோசகருடன் விவாதிக்கவும்.