1. BUYBACK OF SECURITIES
Guided by – Mr. Himal Parikh
Submitted by – Prashant Maharshi

2. WHAT IS BUYBACK???
• Process by a company to bring their shares
back from the shareholders.
• Where shareholders sell their shares directly
to the company.

3. SEBI GUIDELINES FOR BUYBACK
• It should be authorized by the articles of association of the
company.
• The buy back is or less than 25 percent of the total paid up
equity share capital and free reserves
• The ratio of debt owned by the company is not more than
twice the capital and its free reserves after such buy back.
• All the shares or other specified securities for buy back are
fully paid up.
• The amount to be invested under buyback.

4. WHY BUYBACK IS DONE???
• To return surplus cash to shareholders
• To increase the underlying share value
• To support the share prices during temporary weakness
• To achieve or maintain a target capital structure
• To prevent or inhibit unwelcome take-over bids
• To increase promoters holdings
• To increase earnings per share
• In fact the best strategy to maintain the share price in a
bear run is to buy back the shares from the open market at
a premium over the prevailing market price.

5. SOME CASE STUDIES
ON BUYBACK

6. GEMINI COMMUNICATIONS
• O/s Shares before buyback – 106,898,000 equity shares @ Rs. 1 each.
• O/s Shares to be bought back –
Minimum - 1100000 equity shares.
Maximum - 11000000 equity shares.
• O/s Shares of buyback successful - 6618738 equity shares.
• Record date – 24 September, 2012.
• Buyback opening date – 27 January, 2012.
• Buyback closing date – 30 April, 2012.
• Maximum buyback price – Rs. 45.
• Amount for buyback and offer type – Open market, Rs. 30 cr.

7. CRISIL Ltd.
• O/s Shares before buyback – 70,968,440 equity shares @Rs. 1 each.
• O/s Shares to be bought back –
Minimum - 240000 equity shares.
Maximum - 800000 equity shares.
• O/s Shares of buyback successful – 910000 equity shares.
• Record date – 25th April, 2012.
• Buyback opening date – 26 December, 2011.
• Buyback closing date – 30 December, 2012.
• Maximum buyback price – Rs. 1000
• Amount for buyback and offer type – Open market , Rs. 80 cr.

8. ZEE ENTERTAINMENT Ltd.
• O/s Shares before buyback – 958,770,077 equity shares @Rs. 1 each.
• O/s Shares to be bought back –
Minimum - 5,000,000 equity shares.
Maximum - 20,000,000 equity shares.
• O/s Shares of buyback successful – 19,372,853 equity shares.
• Record date – N.A.
• Buyback opening date – Opening – 23 April, 2012
• Buyback closing date – N.A.
• Maximum buyback price – Rs. 140.
• Amount for buyback and offer type – Open market , Rs. 280 cr.

9. MONNET ISPAT & ENERGY Ltd.
• O/s Shares before buyback – 64,337,807 equity shares.
• O/s Shares to be bought back –
Minimum - 600,000 equity shares.
Maximum - 2,000,000 equity shares.
• O/s Shares of buyback successful – 1,286,259 equity shares.
• Record date – 21 December, 2012.
• Buyback opening date – 21 March, 2012.
• Buyback closing date – 21 December, 2012.
• Maximum buyback price – Rs. 500.
• Amount for buyback and offer type – Open market , Rs. 100 cr.

10. RELIANCE INDUSTRIES Ltd.
• O/s Shares before buyback – 3,274,722,771 equity shares.
• O/s Shares to be bought back –
Minimum - 30,000,000 equity shares.
Maximum - 120,000,000 equity shares.
• O/s Shares of buyback successful – 120,000,000 equity shares.
• Record date – 20 January, 2012.
• Buyback opening date – 07 February, 2012
• Buyback closing date – 19 January, 2012
• Maximum buyback price – Rs. 870.
• Amount for buyback and offer type – Open market , Rs. 10,440 cr.

11. RAIN COMMODITIES Ltd.
• O/s Shares before buyback – 354,172,895 equity shares.
• O/s Shares to be bought back –
Minimum - 6,000,000 equity shares.
Maximum - 10,000,000 equity shares.
• O/s Shares of buyback successful – 8,536,585 equity shares.
• Record date – 03 April, 2012.
• Buyback opening date – 14 November, 2011.
• Buyback closing date – 30 April, 2012.
• Maximum buyback price – Rs. 41.
• Amount for buyback and offer type – Open market , Rs. 35 cr.

12. JK LAKSHMI CEMENT
• O/s Shares before buyback – 122,358,924 equity shares @Rs. 10.
• O/s Shares to be bought back –
Minimum – N.A.
Maximum – N.A.
• O/s Shares of buyback successful – 1.39 Crore shares of Rs. 5 each.
• Record date – N.A.
• Buyback opening date – 26 March, 2012.
• Buyback closing date – 6 February, 2012.
• Maximum buyback price – Rs. 70.
• Amount for buyback and offer type – Open market , Rs. 98 cr.

13. SASKEN COMMUNICATION
TECHNOLOGIES Ltd.
• O/s Shares before buyback – N.A.
• O/s Shares to be bought back –
Minimum – 1,450,000 equity shares
Maximum – 5,800,000 equity shares.
• O/s Shares of buyback successful – 4,804,444 equity shares.
• Record date – N.A.
• Buyback opening date – May 21, 2012.
• Buyback closing date – April 22, 2013.
• Maximum buyback price – Rs. 180.
• Amount for buyback and offer type – Open market , Rs. 8,648 lakhs.

14. Thank You