Share buybacks or repurchase are initiated for a number of reasons and it can be to propel a share price hike by reducing their supply or to restrict their controlling stake. Here there are listed 2 currently opened buybacks against which you can tender your shares.
Other compelling reasons why companies go for buyback
In a weak market, in order to give a boost to the equity value, companies tend to take the buyback route.
Also, through buybacks at a premium, companies' tend to depict their healthy financial status and hence attract more investors.
The textile processing sector company opened its buyback on January 13, 2022 and it shall close today (January 27, 2022). The offer price for the buyback has been kept at Rs. 60, while the stock's last traded price is Rs. 60.30 per share i.e. higher than the buyback price.
The small cap company is the flagship entity of the Weizmann Group with business interests spanning textile processing and exports, renewable energy and Fin-tech. Weizmann Limited was initially engaged in Textile Processing and Exports, A to Z of Non Banking Finance Activities and in the early 1990's commenced Money Changing Business as an FFMC registered with RBI, under the brand name Weizmann Forex. Later it got engaged in money transfer as reps of Western Union. Also, the group promoted a HFC, Weizmann Homes. The fund through its years of operations have been either diversifying or divesting from the current business.
The buyback by the company commenced from January 14 and shall conclude tomorrow January 28, 2022. The offer price for the buyback has been pegged at Rs. 900. This against the current share price of Rs. 702.5 will imply gains of over 28%.
MPS Ltd. is a small market cap entity that is a leading global provider of platforms, and content, and learning solutions for the digital world. The company was started as an Indian arm of Macmillan (Holdings) Limited in 1970. The company's captive business allowed MPS to build unique capabilities and talents through strategic partner programs. MPS is now a global partner to the world's leading enterprises, learning companies, publishers, libraries, and content aggregators. The company's m-cap last was at Rs. 1268 crore.
How share buyback impacts its price?
Generally through share buybacks the company which declares to buy back its shares from public holders at a substantial premium signals of its healthy financials and hence in turn hints at the company's confidence in itself. This corporate action therefore has a positive impact on the company's share price going for a buyback.
The above opened buybacks are listed just for reference and are not aimed to nudge readers to buy and tender their holdings for the buyback.