The board of directors of three companies including Aarti Drugs, SJVN and Unichem Lab will meet today to discuss on share buyback proposal.
In the share buyback, companies in order to distribute surplus cash with it buy shares from the company shareholder's at a pre-specified price. And as the number of outstanding shares decline with the buyback offer , EPS and hence the market price of the company increase.
The share buyback by Infosys worth Rs. 13000 crore in addition to 32 other companies has made the year 2017-18 make a record with an aggregate buyback of shares worth Rs 486.39 billion until December 2017.
As a general trend seen after the announcement of the share buyback, all of the companies are seen trading higher by over 5%.