Ppt On Buy Back Shares- Nikhil
This document was uploaded by user and they confirmed that they have the permission to share it. If you are author or own the copyright of this book, please report to us by using this DMCA report form. Report DMCA
Overview
Download & View Ppt On Buy Back Shares- Nikhil as PDF for free.
More details
- Words: 371
- Pages: 8
A PRESENTATION ON
BUY BACK OF SHARES REGARDING TO RELIANCE ENERGY
SUBMITTED TO :PARIZAD DUNGORE (FACULTY – S. ANALYSIS) SUBMITTED BY:NIKHIL GIRHEPUNJE 8NBNG147 ICFAI NATIONAL COLLEGE
Buyback is reverse of issue of shares by a company where it offers to take back its shares owned by the investors at a specified price.
Valuation Of Buy back:Average Closing Price:Weighted Average for Volume Invitation To Shareholder:To invite shareholder to sell some or all of their shares within a set price range. 1.Low Price Range 2.Top Price Range
How is it Done:Tender Offer :Shareholder have an option to submit a portion OR to submit all shares. Dutch Auction :Companies state a range of price at which it’s willing to accept & buy. Company can buy a share from a Open market Book Building Process
Why Companies Go For Buy Back :Increase Promoters Stake Unused Cash Tax Gain Market Perception Exit Option Escape monitoring of accounts and legal controls Show rosier financials
Restriction’s On Buyback:A special resolution has to be passed in general meeting of the shareholders. Buyback should not exceed 25% of the total paid-up capital and free reserves. A declaration of solvency has to be filed with SEBI and Registrar Of Companies. The shares bought back should be extinguished and physically destroyed. The company should not make any further issue of securities within 2 years, except bonus, conversion of warrants, etc.
Effect of Buy Back on Stock Exchange :Abnormal increase In Share Price Reduction In Investors Interest
Penalty:Company or Any Officer Who At The Default:Punishable with Imprisonment May Extend To 2 Year’s. May Be Rs.50,000. Or Both Of Above.
Buy Back Of Reliance Energy:Mr. Anil Ambani (Reliance Energy) bought back 6,50,000 equity shares of the company in the morning on Tuesday at nearly Rs.1,279.23/share aggregating Rs.831.5 million. Amounting 10 % the company`s equity and free reserves. Reason:- To increase the price of its shares.
Result:- At noon Friday, shares of the company were trading at Rs.1,310 up by Rs.28.20 from its previous close at the BSE.
Act For Buy Back Of Shares:Section 77A, 77AA and 77B of the Companies Act,1956.
Conclusion :The buyback has slight impact on the fundamentals of the economy or the company. Therefore investors should be cautious of promoters' traps.
BUY BACK OF SHARES REGARDING TO RELIANCE ENERGY
SUBMITTED TO :PARIZAD DUNGORE (FACULTY – S. ANALYSIS) SUBMITTED BY:NIKHIL GIRHEPUNJE 8NBNG147 ICFAI NATIONAL COLLEGE
Buyback is reverse of issue of shares by a company where it offers to take back its shares owned by the investors at a specified price.
Valuation Of Buy back:Average Closing Price:Weighted Average for Volume Invitation To Shareholder:To invite shareholder to sell some or all of their shares within a set price range. 1.Low Price Range 2.Top Price Range
How is it Done:Tender Offer :Shareholder have an option to submit a portion OR to submit all shares. Dutch Auction :Companies state a range of price at which it’s willing to accept & buy. Company can buy a share from a Open market Book Building Process
Why Companies Go For Buy Back :Increase Promoters Stake Unused Cash Tax Gain Market Perception Exit Option Escape monitoring of accounts and legal controls Show rosier financials
Restriction’s On Buyback:A special resolution has to be passed in general meeting of the shareholders. Buyback should not exceed 25% of the total paid-up capital and free reserves. A declaration of solvency has to be filed with SEBI and Registrar Of Companies. The shares bought back should be extinguished and physically destroyed. The company should not make any further issue of securities within 2 years, except bonus, conversion of warrants, etc.
Effect of Buy Back on Stock Exchange :Abnormal increase In Share Price Reduction In Investors Interest
Penalty:Company or Any Officer Who At The Default:Punishable with Imprisonment May Extend To 2 Year’s. May Be Rs.50,000. Or Both Of Above.
Buy Back Of Reliance Energy:Mr. Anil Ambani (Reliance Energy) bought back 6,50,000 equity shares of the company in the morning on Tuesday at nearly Rs.1,279.23/share aggregating Rs.831.5 million. Amounting 10 % the company`s equity and free reserves. Reason:- To increase the price of its shares.
Result:- At noon Friday, shares of the company were trading at Rs.1,310 up by Rs.28.20 from its previous close at the BSE.
Act For Buy Back Of Shares:Section 77A, 77AA and 77B of the Companies Act,1956.
Conclusion :The buyback has slight impact on the fundamentals of the economy or the company. Therefore investors should be cautious of promoters' traps.
Related Documents
Ppt On Buy Back Shares- Nikhil
May 2020 1
Buy Back Of Shares
June 2020 8
Buy-back Of Shares
April 2020 7
Buy Back Of Shares
June 2020 7
Buy Back & Demat
June 2020 9