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India Inc buys back shares worth Rs 3,000 crore

India Inc buys back shares worth Rs 3,000 crore

New Delhi: Through the repurchase programme last year, India Inc bought back shares worth Rs 3,000 crore from public shareholders.

India Inc achieved just about 34 percent of the targeted amount. In all, 33 buybacks were concluded with a total acquired amount of Rs 3,023 crore in 2014, as against the offered amount of Rs 8,939 crore — achieving a target of 34 percent, according to Prime Database.

In comparison, 27 buyback programmes were completed in 2013 worth Rs 6,892 crore. This was against the target to repurchase shares worth about Rs 14,415 crore from the public shareholders. Thus achieving a target of 48 percent. Market analysts attributed the reason for decline in the number of companies achieving the full target to surge in the market barometer, with the BSE Sensex surging by 30 percent in 2014.

Prime Database Managing Director Pranav Haldea said, “Strong, buoyant secondary market which led to an increase in stock prices which acted as a deterrent for buybacks.” The largest buyback completed was by Cairn India for Rs 1,225 crore. However, the company had set a target to repurchase shares worth about Rs 5,725 crore from the public shareholders. It results in a reduction in share capital to the extent shares bought back. The move also leads to an increase in promoter holding and improvement in earnings per share for the future period.