Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Download
Standard view
Full view
of .
Look up keyword or section
Like this
13Activity

Table Of Contents

0 of .
Results for:
No results containing your search query
P. 1
Stocks Buyback

Stocks Buyback

Ratings: (0)|Views: 364 |Likes:
Published by ruchi070186

More info:

Published by: ruchi070186 on Aug 21, 2010
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as DOCX, PDF, TXT or read online from Scribd
See more
See less

10/16/2012

pdf

text

original

 
T.A. PAI MANAGEMENT INSTITUTE, MANIPAL
ADVANCED CORPORATEFINANCE
STOCKS BUYBACK
8/13/2010
PRESENTED BYPUSHAN SHARMA, 09129RUCHI GUPTA, 09137SASHANK SHAH, 09141
 
1
Table of Contents
1
 
MEANING OF BUYBACK OF SHARES .......................................................................... 4
 
1.1
 
Definition 1 .................................................................................................................. 4
 
1.2
 
Definition 2 .................................................................................................................. 4
 
1.3
 
Definition 3 .................................................................................................................. 4
 
1.4
 
Definition 4 .................................................................................................................. 4
 
2
 
OBJECTIVE OF BUYBACK OF SHARES ........................................................................ 5
 
3
 
ADVANTAGES AND DISADVANTAGES OF BUYBACK OF SHARES ....................... 6
 
3.1
 
Advantages ................................................................................................................... 6
 
3.2
 
Disadvantages ............................................................................................................... 8
 
4
 
DIVIDEND OR A BUYBACK WHICH IS A BETTER OPTION ...................................... 9
 
5
 
WHICH COMPANIES SHOULD CONSIDER A SHARE BUY-BACK? ........................ 11
 
6
 
METHODS OF BUYBACK ............................................................................................. 12
 
6.1
 
FOR PUBLIC OR LISTED COMPANIES ................................................................. 12
 
6.1.1
 
BUYBACK THROUGH TENDER OFFER ........................................................ 12
 
6.1.2
 
BUYBACK FROM OPEN MARKET THROUGH STOCK EXCHANGE .......... 14
 
6.1.3
 
BUYBACK FROM OPEN MARKET THROUGH BOOK-BUILDING .............. 16
 
6.2
 
BUYBACK OF SHARES BY PRIVATE LIMITED COMPANIES OR UNLISTEDCOMPANIES ....................................................................................................................... 18
 
7
 
EFFECTS OF BUYBACK OF SHARES .......................................................................... 20
 
7.1
 
Effects on the Company .............................................................................................. 20
 
7.1.1
 
SHAREHOLDING PATTERN CHANGES......................................................... 20
 
7.1.2
 
IMPROVEMENT IN THE FINANCIAL RATIOS OF THE COMPANY ........... 21
 
7.2
 
Effects on the Shareholder .......................................................................................... 23
 
7.2.1
 
Tax Benefits ........................................................................................................ 23
 
7.2.2
 
Higher Proportion of share ................................................................................... 24
 
7.2.3
 
Higher Share Price ............................................................................................... 24
 
8
 
CASE STUDIES ............................................................................................................... 25
 
8.1
 
HINDUSTAN UNILEVER LIMITED ........................................................................ 25
 
8.1.1
 
About Hindustan Unilever Limited ...................................................................... 25
 
8.1.2
 
Offer .................................................................................................................... 26
 
8.1.3
 
Reason for Buyback ............................................................................................. 26
 
8.1.4
 
Effects of Buyback .............................................................................................. 28
 
8.2
 
GLAXOSMITHKLINE CONSUMER HEALTH CARE LIMITED............................ 30
 
 
28.2.1
 
About the company .............................................................................................. 30
 
8.2.2
 
Present Operations ............................................................................................... 30
 
8.2.3
 
Offer .................................................................................................................... 31
 
8.2.4
 
Reasons for Buy back .......................................................................................... 32
 
8.2.5
 
The Buy Back ...................................................................................................... 32
 
8.2.6
 
Various Ratios ..................................................................................................... 33
 
8.3
 
INDIAN RAYON ....................................................................................................... 33
 
8.3.1
 
About the company .............................................................................................. 33
 
8.3.2
 
Details of Buyback .............................................................................................. 33
 
8.3.3
 
Reasons for buyback ............................................................................................ 33
 
8.3.4
 
Result .................................................................................................................. 34
 
9
 
ANALYSIS OF BUYBACKS BY VARIOUS COMPANIES ........................................... 35
 
9.1
 
KAMA HOLDING LTD ............................................................................................ 35
 
9.1.1
 
EFFECT ON FINANCIAL RATIOS ................................................................... 35
 
9.1.2
 
EFFECT ON SHAREHOLDING PATTERN ...................................................... 37
 
9.2
 
PRIME SECURITIES ................................................................................................. 38
 
9.2.1
 
EFFECT ON FINANCIAL RATIOS ................................................................... 38
 
9.2.2
 
EFFECT ON SHAREHOLDING PATTERN ...................................................... 40
 
9.3
 
SRF LTD. ................................................................................................................... 40
 
9.3.1
 
EFFECT ON FINANCIAL RATIOS ................................................................... 40
 
9.3.2
 
EFFECT ON SHAREHOLDING PATTERN ...................................................... 42
 
9.4
 
RELIANCE INDUSTRIES ......................................................................................... 43
 
9.4.1
 
EFFECT ON FINANCIAL RATIOS ................................................................... 43
 
9.4.2
 
EFFECT ON SHAREHOLDING PATTERN ...................................................... 45
 
9.5
 
REVATHI EQUIPMENTS ......................................................................................... 46
 
9.5.1
 
EFFECT ON FINANCIAL RATIOS ................................................................... 46
 
9.6
 
RELIANCE INFRASTRUCTURE ............................................................................. 48
 
9.6.1
 
EFFECT ON FINANCIAL RATIOS ................................................................... 48
 
9.6.2
 
EFFECT ON SHAREHOLDING PATTERN ...................................................... 50
 
9.7
 
 NATCO PHARMA .................................................................................................... 51
 
9.7.1
 
EFFECT ON FINANCIAL RATIOS ................................................................... 51
 
9.8
 
POLARIS SOFTWARE ............................................................................................. 53
 
9.8.1
 
EFFECT ON FINANCIAL RATIOS ................................................................... 53
 
9.8.2
 
EFFECT ON SHAREHOLDING PATTERN ...................................................... 55
 

Activity (13)

You've already reviewed this. Edit your review.
1 hundred reads
1 thousand reads
Hirak Sinha liked this
Dipu1547 liked this
Sanath Fernando liked this
sagar81285 liked this
utsav_8710 liked this
ishankukreja liked this
goyaljayant liked this

You're Reading a Free Preview

Download
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->