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Presented By:
Anil Jani
Bhavin GandhiNikihil Khandke
Nikhil S
Vaishali Suvarna
Wasif Raza
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Buy back is a reverse issue of share of company
This can be binding or optional to the investors
Purchase of long term position by a company to offset s short
term position Stock buyback is also known as share repurchase
Buyback ordinance introduced by GOI on october 31,1998
Governed by Securities and Exchange board of indias(SEBI)
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Unsused Cash
Tax Gains
Market Perception
Exit Option
Escape Monitoring of accounts and legal controls
Show rosier financials
Increase PromotersnStake
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Tender Offer
Tender a portion or all of their shares with in time frame
Open Market
Buy shares on the open market
Book-building Process
Mechanism of price delivery that determine the market
price of securities
Employee-share purchase,odd-lot purchase,Selective buybacks
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Authorised by article association of the company
Special resolution has been passed at general body meeting
Buy back is or less than 25% of total paid up equity
share/capital Ratio of debt is not more than twice the capital
All shares or other specified securities for buyback are fully
paid.
No default in filling of annual returns
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A H Dalmia Group had 10.5% stake in GESCO at Rs. 24 /
share.
A H Dalmia acquire 45 % stake of GESCO at Rs.27/ share .
GESCO counteroffer of Rs.36/ share and alter raised toRs.45/share.
Promoters had 13% stake which increased to 30%
GESCO counter offer of Rs .54/share
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Company Created history when it was listed in Stock Excahnges
in 1956 and offered 10 % equity to Indian shareholders.
Uniliver-51.42%,Resident Individuals-17.50%,Foreign
Institutional Investors-12.32%,Insurance companies and financialinstitutions-12.93% .
Buyback share at a price of Rs.230/share
100% buyback happens at the maximum price quoted by the
company
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Company hold 73.53% of the paid up capital of the company.
Profit making company having an un interrupted dividend
record since 1981.
29 April,2005 approved the proposal for buyback of companyown fully equity shares of Rs.2/each.
Buy back to the extent of or less than
10% of paid up equity capital and free reserves of the company
At a price not exceeding Rs.60/-per equity share
Total amount consideration not exceeding 1859 lakhs
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Walt Disney is set to acquire majority in UTV Softwarecommunication Ltd with intention of delisting it.
Walt Disney will buy out public shareholders and other
promoters holding in UTV for around Rs.2013 crore .
Shares held by public shareholders will be acquired atRs.1000 per equity share.
Disney owns 50.44% in UTV during 2008.
UTV founders Ronnie Screwvala, Zarina Mehta and RS
Promoters own 19.82% of the current paid-up equity share
capital, taking the aggregate promoter holding in the company
to 70.26%. The balance 29.74% is in the public domain.
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Used as an opportunity to exit only when there is concerns over
companys prospects.
Free float is expected to shrink considerably.
Immediate benefit but you might be better of as residualshareholder
Gain from hike in the share of assets and profits of the business.
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