A Study On Impact of Share Repurchase (Buyback) On Stock Return

A
PROJECT REPORT
ON
“A Study on Impact of Share Repurchase (Buyback) on Stock Return”
Submitted towards the partial fulfillment of the requirement of

MBA (full-time) program
Subject: CP-403 & 404 project study
Submitted by
“Jariwala Tapan Tarunbhai”
Under the Guidance of

“Prof. (Dr.) Janki Mistry”
G. H. Bhakta Management Academy,

Department of Business and Industrial Management,
Veer Narmad South Gujarat University, Surat
April 2023
DECLARATION
I, the undersigned Tapan T. Jariwala, student of MBA (2 year full-time) program at the
Department of Business & Industrial Management, Veer Narmad South Gujarat University, Surat,
hereby declare that the work reported by me in this report titled “A Study on Impact of Share
Repurchase (Buyback) on Stock Return” is original and fully an outcome of the summer
research project work carried out by me .
I also declare that the secondary sources of information have been duly acknowledged wherever
used. Further, I would like to declare that this report has not been submitted to any other university
or institute for the award of any degree or diploma.
Date:
Place: Surat
………………………
(Tapan Jariwala)
SPID: - 2021070106
MBA (Full-Time) Program
Subject: CP-403 & 404 Project Study
Department of Business and Industrial Management,
Veer Narmad South Gujarat University,
Surat
I
Department of Business & Industrial Management
Surat
CERTIFICATE
This is to certify that the project study report title “A STUDY ON IMPACT OF SHARE
REPURCHASE (BUYBACK) ON STOCK RETURN” submitted by TAPAN TARUNBHAI
JARIWALA is a record of the work carried out under my guidance and supervision for the subject
“project study (cp-403 & 404)” in MBA (full-time) Sem-IV.
To the best of my knowledge, this report has not been submitted to any other university of institute
for any degree or diploma award.
Prof. (DR). Janki Mistry

Department of Business and Industrial Management
Veer Narmad South Gujarat University
Surat – 395007, Gujarat, India
Professor & Head

Prof. (DR). Manish Sidhpuria
Department of Business and Industrial Management
Surat – 395007, Gujarat, India.
II
ACKNOWLEDGEMENT
I am glad to express my profound sentiments of gratitude to all who rendered their valuable help
for the successful completion of this project report titled “A STUDY ON IMPACT OF SHARE
REPURCHASE (BUYBACK) ON STOCK RETURN.”
It is my great pleasure to have this opportunity to express my sense of gratitude to our head of the
department Prof (Dr.) Manish Sidhpuria It is due to his encouragement, which would not have
been completed without his help.
I would like to express my huge thanks and gratitude to Prof (Dr.) Janki Mistry for prompt
support and guidance in accomplishing this project.
I express my Gratitude to Department of Business and Industrial Management for the support and
the environment it has provided me.
My sincere gratitude goes to Veer Narmad South Gujarat University that gave me a chance to
brighten my academic qualification that provides the opportunity to have practical knowledge
about the relevant field.
TAPAN T. JARIWALA
III
EXECUTIVE SUMMERY
Firstly, I have included certain things like introduction of stock market, introduction of Share
Buyback and a brief study of impact of Share repurchase (Buyback) on stock return,
The objective behind preparing the report has been mentioned in brief and the main objective is to
study “A STUDY ON IMPACT OF SHARE REPURCHASE (BUYBACK) ON STOCK
RETURN.”
There is certain limitation of the project report like limited numbers of share buybacks (only during
the year 2018 to 2022), study is only on returns and abnormal returns of different stocks.
The report includes 5 chapters. The first chapter is introduction. It includes introduction of share
buyback, Indian stock market, NSE & BSE, Emerging scenario of share buyback in the Indian
corporate and also introduction of share buyback and its impact on Indian stock market.
The second chapter is literature review in which we show that past research in our topics which
helps us for our project.
The third chapter is Research methodology which provides information about the sample size,
sampling design, sampling unit; research instrument used problem statement, research objective,
research design, data collection methods and limitation of the study.
The fourth chapter is data analysis. In it all collected information are analyzed through MS Excel.
and all the collected information is shown through tables also made some interpretation about each
tables.
The fifth chapter is conclusion. The outcome of each data is mention under this heading and in
conclusion the overview of the study.
IV
INDEX
Page
Sr. No. Topic
No.
Declaration I
Department Certificate II
Acknowledgement III
Executive Summary IV
Chapter-1 Introduction
1.1 An Introduction to the Indian stock market 1
1.2 Emerging scenario of share buyback in the Indian corporate 3
1.3 Meaning: Relevant Law 4
1.4 Share Buy-Back: An Overview 5
1.5 Share Buyback: Positive Aspects 6
1.6 Share Buy-Back Negative Aspects 6
1.7 Which Companies Should Consider a Share Buy-Back? 7
SEBI Regulations, 1998 For Buy-Back Of Securities Latest
1.8 7
Amendments
1.9 Buyback Through Tender Offer 9
1.10 Buyback From Open Market Through Stock Exchange 11
1.11 Buyback From Open Market Through Book-Building 12
Chapter-2 Literature Review
2.1 Literature review 14
Chapter-3 Research Methodology
3.1 Definition Of Research 17
3.2 Research Problem Statement 17
3.3 Objectives of Study 17
3.4 Research Design 17
3.5 Sampling Plan 18
3.6 Type of Data 18
3.7 Sources of Data 19
3.8 Scope of The Study 19
3.9 Limitations of Study 19
Chapter-4 Data Analysis
4.1 What is event study? 20
4.2 What is t-Test? 22
4.3 t-Test Analysis of Open market Buyback offer 25
4.3.1. t-Test analysis of Share Buyback during the year 2022-23 25
4.4 t-Test Analysis of Tender offer Buyback 34
4.5 Summary of data analysis 44
Chapter-5 Conclusion
5.1 Findings 45
5.2 Conclusion 46
Bibliography 47
Webography 49
Annexure 50
List of Tables
Page
Sr. No. Topic
No.
4.1 Return and abnormal return of Open market buyback (2022-23) 25
4.2 t-Test analysis of Open market buyback (2022-23) 26
4.11 Return and abnormal return of Tender offer buyback (2022-23) 34
4.12 t-Test analysis of Tender offer buyback (2022-23) 35
4.20 Summary of Data analysis 44
List of Charts
Page
Sr. No. Topic
No.
4.1 Chart of open market buyback: Year 2022-23 26
4.6 Chart of Tender offer buyback: Year 2022-23 35
A Study on The Impact of Stock Repurchase on Stock Return
1.1. An Introduction to the Indian stock market:

India is a growing market with the potential to expand quickly, and the Indian stock market has
also come true to this point. For decades, the Indian stock market has produced wealth for savvy
investors. Nowadays, it is currently drawing more investment than it did previously. The stock
market was an investment instrument owned or controlled by the privileged few a few decades
back. However, as technology develops and becomes more widely available, the general public is
becoming more interested in the stock market and taking advantage of this fantastic opportunity.
1.1.1. Overview
The long-term performance of the Indian equities market has consistently outperformed that
of other asset groups. To make the most of it, all it takes is some knowledge and patience
The National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) are the two
stock exchanges that govern the Indian stock market. The Government of India legally
approved 22 stock exchanges under the Securities Contracts (Regulation) Act of 1956. These
were the regional stock markets, which also included ones in Hyderabad, Jaipur, Madras, and
Department of Business & Industrial Management 1

other places, but most of them are no longer in use. Under SEBI's departure strategy, most of
these regional stock exchanges have been shut down in recent years.
The two stock exchanges, BSE and NSE, currently account for nearly all of the country's stock
trading activity and are the biggest and most popular stock exchanges in India. These
exchanges use digital platforms for trade. In these two exchanges, each has a unique electronic
automated trading system. These systems are among the quickest and most sophisticated in
existence
The National Securities Depository Limited (NSDL) and Central Depository Services Limited
(CDSL) are two other central depositories. The shares in India are digitally recorded by these
depositories.
Depository Participants, or D.P. for short, refer to a number of the central depositories'
members. For investors to use the services of central depositories, they must create a Demat
account with one of these D.P.s.
Like bank accounts store money, your Demat account keeps digital records of your shares.
The majority of brokers, big banks, and NBFCs are D.P.s. It is the investor's choice to choose
a Depository Participant and should be followed accordingly for creating a Demat account.
However, the investors can also communicate with the central depository via this Demat
account
Before the development of central depositories, stock trading took place in person. The buyer
and seller exchanged shares using a physical share document. This previously came with
several dangers, including poor delivery, false share certificates, ripped or patched
certificates, delayed certificate delivery, etc. These dangers associated with physical
certificates were reduced with the development of digitized central depositories, such as
NSDL and later CDSL. In 1996, the NSDL was first released. On the same ideas, a second
repository called CDSL was launched later in 1999.

1.1.2. The NSE and BSE
The Bombay Stock Exchange (BSE) and the National Stock Exchange of India Ltd. are the
two biggest stock exchanges in India. The BSE is the oldest stock exchange in Asia and India.
It has been around since 1875, although the NSE only enabled trading in 1994. Mumbai is
home to both the Bombay Stock Exchange and the National Stock Exchange.
The BSE eventually implemented a fully computerized digital trading system, but the NSE
was the first Indian stock exchange to employ a computerized, screen-based electronic trading
system
Both exchanges currently employ the BOLT (BSE On-Line Trading) and NEAT (National
Exchange for Automated Trading) technologies for automated digital trading.
To match and execute an order, both exchanges employ a computerized open limit order
matching mechanism. This process automatically matches all purchase orders with the
corresponding sell limit orders.
The BSE has more listed businesses than any other stock market in the world, with more than
5500. At the same time, the NSE lists roughly 2000 firms. About half of the firms listed on
the BSE do not frequently trade, making their shares relatively illiquid. About 90% of the
BSE and NSE market capitalization is made up of the top 500 listed companies.
1.2. Emerging scenario of share buyback in the Indian corporate
Competitive forces with the unleashing of the liberalization policies have made corporate
restructuring as a necessity for survival and growth. Operational, financial and managerial
strategies are employed to maintain competitive edge and turnaround a sickened performance.
Financial restructuring involves either internal or external restructuring (i.e., Mergers and
Acquisitions).

In the internal restructuring an existing firm undergoes through a series of changes in terms of
composition of assets and liabilities. Section 77A, 77B and 77AA now allow companies to buy
back their shares following the recommendations of committee on corporate restructuring, which
was set up by the government to propose various strategies to strengthen the competitiveness of
the banking and finance sector, companies are now allowed to repurchase their own shares. This
will enable the companies to catch up with other developed markets as part of the government's
moves to liberalize the local market and hence emerged the concept of SHARE BUY BACK in
the Indian corporate scenario.
1.3. Meaning: Relevant Law
“A Procedure which enables a company to go back to the holder of its shares/specified

securities and offer to purchase from them the shares/specified securities that they hold.”
1.3.1. Comparative analysis of the companies act, 1956 and the companies act, 2013
SECTION 77A OF THE COMPANIES ACT, 1956 (SECTION 68 OF THE COMPANIES

ACT, 2013): POWER OF COMPANY TO PURCHASE ITS OWN SECURITIES
✓ The 1956 Act provided that no offer of buy-back shall be made within a period of 365 days
reckoned from the date of the preceding offer of buyback. The expression ‘offer of buy-
back’ was defined as buy-back by resolution of the board of directors within the 10% limit.
The 2013 Act has changed the 365 days period to 1 year period. The period of 1 year under
the 2013 Act has to be reckoned from the date of the closure of the preceding offer of buy-
back whereas under the 1956 Act the 365 days period was to be reckoned from the date of
the preceding offer of buy-back. The 2013 Act omits the definition of the expression ‘offer
of buy-back’.
✓ The 1956 Act requires every buy-back to be completed within 12 months from the date of
passing the special resolution or the Board resolution as the case may be. The 2013 Act
replaces the 12 months’ time-limit with 1 year time-limit.

✓ Section 77A(5)(c) of the 1956 Act provided that the buy-back may be from holders of odd
lots of shares. Section 68(5) of the 2013 Act omits this provision.
✓ Penalties for violation of section 68 of the 2013 Act are lot heavier than penalties for
violation of section 77A of the 1956 Act.
SECTION 77AA OF THE COMPANIES ACT, 1956 (SECTION 69 OF THE COMPANIES

ACT, 2013): TRANSFER OF CERTAIN SUMS OF CAPITAL REDEMPTION RESERVE
ACCOUNT
✓ Requirement of transfer to Capital Redemption Reserve under section 77AA of the 1956
Act applied when buy-back was out of free reserves. Requirement under the 2013 Act
applies when buy-back is “out of free reserves or securities premium account.”
SECTION 77B OF THE COMPANIES ACT, 1956 (SECTION 70 OF THE COMPANIES

ACT, 2013): PROHIBITION FOR BUY-BACK IN CERTAIN CIRCUMSTANCES
✓ The 2013 Act provides that prohibition on buy-back to continue for till 3 years after
specified default(s) remedied. Under the 1956 Act, prohibition on buy-back ceased
immediately when default ceased to subsist.
1.4. Share Buy-Back: An Overview

Share Buy-back is a financial tool for financial re-engineering. It is described as a procedure that
enables a company to purchase shares from the shareholders. The rationale behind buy-back of
shares is to boost demand by reducing the supply, which in theory should push the price up. The
repurchase of shares reduces the number of shareholders, which in turn enhances the earnings per
share (EPS), and thus improves investor’s sentiments.
1.4.1. Objective of Buy-Back
A company may decide to buy-back its shares for one of the following reasons:
➢ To return surplus cash to shareholders as an alternative to a higher dividend payment or
investing the surplus cash in existing or new operations.

➢ Adjust or change the company’s capital structure quickly, say for those companies seeking
to increase its debt/equity ratio.
➢ To increase earnings per share and net asset value per share as a possible signal to the
market place that management is of the view that the prospects of the company justify a
market price higher than that currently accorded by the market.
➢ To improve the various performance parameters like EPS,DPS, operating cash flow per
share, etc.
➢ To achieve or maintain a target capital structure.
1.5. Share Buyback: Positive Aspects
➢ The market generally interprets share buy-backs as positive signal.

➢ Shareholders have a choice of deciding whether or not to receive the payout by selling or
holding their shares, unlike a dividend payout.
➢ Returning excess cash by way of a share buy-back gives a company greater flexibility with
regard to its dividend policy.
➢ Share buy-backs could enable a company to achieve its desired capital structure more
quickly or facilitate a major restructuring.
➢ A share buy-back could avert a hostile takeover bid by reducing the number of shares in
circulation.
1.6. Share Buy-Back Negative Aspects
➢ The repurchase of its own shares may conversely have a negative signaling effect as the
market place may think that the company has fewer growth opportunities after a share buy-
back, due to erosion of cash resources.
➢ Management may not seek to utilize any existing excess cash effectively by acquiring new
investments or developing profitable markets.
➢ Possible mismanagement may arise if too high a price is paid for the re-purchased shares,
to the detriment of remaining shareholders, or if cash resources are eroded to the level that
could give rise to a risk of insolvency at the expense of its creditors.

➢ If buy-back is undertaken by replacing shares with debt in cases where companies do not
have adequate funds for buy-back of shares, the proposal may misfire on the company.
➢ A return of funds by way of a share buy-back is less certain than an annual dividend stream.
1.7. Which Companies Should Consider a Share Buy-Back?
A company with some of the following characteristics may find a share buy-back scheme
feasible:
➢ A company that has a high net surplus cash position may consider a share buyback.
➢ A company that has a low debt/equity ratio may go in for a share buyback for the purpose
of increasing the ratio.
➢ A company, which does not, has a high capital expenditure requirements in future may go
in for a share buyback.
➢ A company with a High dividend yield may also consider for a share buyback.
➢ The company, which is of view, that the intrinsic value of the shares of the Company is
substantially higher than the market price of the Shares of the Company may consider for
a share buy-back.
1.8. SEBI Regulations, 1998 For Buy-Back Of Securities Latest Amendments
LAD-NRO/GN/2011-12/36/3187 - In exercise of powers conferred by sub-section (1) of section

30 of the Securities and Exchange Board of India Act, 1992 (15 of 1992) read with clause (f) of
sub-section (2) of Section 77A of the Companies Act, 1956 (1 of 1956) the Board hereby makes
the following regulations to amend the Securities and Exchange Board of India (Buy-Back of
Securities) Regulations, 1998, namely:
Amendments to SEBI (Buy Back of Securities) Regulations, 1998 governing buy-back

through open market purchase:

As part of SEBI's constant endeavor to align regulatory requirements with the changing market
realities as well as to enhance efficiency of the buy-back process, the following changes to buyback
of shares or other specified securities from the open market through stock exchange mechanism
have been approved:
(i) The mandatory minimum buy-back has been increased to 50% of the amount earmarked
for the buy-back, as against existing 25%, failing which amount in the escrow account
would be forfeited subject to a maximum of 2.5% of the total amount earmarked.
(ii) The maximum buy-back period has been reduced to 6 months from 12 months.
(iii) The companies shall create an escrow account towards security for performance with an
amount equivalent to at least 25% of the amount earmarked for buy-back.
(iv) The company shall not raise further capital for a period of one year from the closure of the
buy-back except in discharge of subsisting obligations as against the existing 6 months.
(v) The company shall not make another buy-back offer within a period of one year from the
date of closure of the preceding offer.
(vi) The disclosure requirements have been rationalized requiring disclosure of the shares
bought back on a cumulative basis on the website of the company and the stock exchange,
only on a daily basis instead of the current requirement of disclosure on daily, fortnightly
and monthly basis.
(vii) The companies can buy-back 15% or more of capital (paid-up capital and free reserves)
only by way of tender offer.
(viii) Procedure for buy-back of physical shares (odd-lot) has been modified which includes
creation of separate window in the trading system for tendering the shares, requirement of
PAN/Aadhaar for verification, etc.
(ix) The companies are permitted to extinguish shares bought back during the month, within
fifteen days of the succeeding month subject to the last extinguishment within seven days
of the completion of the offer.
(x) The promoters of the company shall not execute any transaction, either on-market or off-
market, during the buyback period.

1.9. Buyback Through Tender Offer
1) Firstly, it is expedient to obtain approval of shareholders for buyback by a special

resolution. The explanatory statement to be annexed to the notice of the general meeting,
for the purpose of passing the special resolution. The notice shall broadly contain the
following information:
• Maximum price at which the buyback shall be made and whether Board of
Directors is authorized at General Meeting to determine subsequently the specific
price at which buy back may be made at appropriate time.
• Number of shares/ securities that the company proposes to buy.
• If promoters are participating in the offer quantum of shares proposed to be
tendered; and
• Details of their transactions and their holdings for the last six months prior to the
passing of the special resolution for buy back including information of number of
shares acquired, the price and the date of acquisition.
2) The company should file a copy of special resolution with SEBI and concerned stock
exchanges where the shares of the company are listed within 7 days of passing such
resolution.
3) The company should file a Declaration of Solvency with SEBI in the prescribed form,
duly verified by an affidavit.
4) The company should nominate a compliance officer and an investor service center for
compliance with the buy-back regulations and to redress the grievances of the investors.
5) The company should make a public announcement of buy back. In the public announcement,
the company has to select a record date referred to as ‘specified date’, which shall be the
date for the purpose, of determining the names of shareholders to whom the letter of offer
shall be sent.
6) The company should file a draft letter of offer with SEBI within 7 days of public
announcement through a merchant banker not associated with the company. The company
should issue the letter of offer to the shareholder after incorporating the change, if any
suggested by SEBI.
7) The date of opening the offer shall not be earlier than 7 days or later

than 30 days after the ‘specified date’.

8) The company shall on or before the opening of offer, deposit in an escrow account
• 25% of the consideration payable, where the maximum amount payable under the
buyback is less than Rs. 100 crores; or
• 10% of the consideration payable where the maximum amount is in excess of Rs. 100
crores
9) The escrow can be in the form of
• Cash deposited with a scheduled commercial bank
• Bank guarantee in favor of merchant banker
• Deposit of acceptable securities with merchant banker
• Any combination of the above
If the escrow is in the form of bank guarantees or acceptable securities, the company shall also
deposit with the bank in cash a sum of at least 10% of the total consideration payable. In the event
of non-fulfillment of obligations prescribed in the Regulations, SEBI may forfeit the escrow
account either in full or in part. The amount so forfeited may be distributed pro rata amongst the
shareholders who have accepted the offer and balance remaining, if any, should be utilized for
investor protection.
10) The offer shall remain open to the members for a period of at least 15 days but not more
than 30 days.
11) Verify the offers received and communicate acceptance rejection within 15 days of the
closure of offer.
12) Make payment to the shareholders, whose offer for buy back has been accepted within 7
days from the date of completion of verification. The amount lying in escrow is allowed
to be utilized for the purpose of making the payment.
13) File the particulars of share certificates that are extinguished and destroyed with stock
exchanges within 7 days.

1.10. Buyback From Open Market Through Stock Exchange
1) The company should obtain approval of shareholders for buy back by a special resolution.
The explanatory statement to be annexed to the notice of the general meeting for the
purpose of passing the special resolution for buy back. The notice shall broadly contain the
following information:
• Maximum price at which the buyback would be made.
• Number of shares/securities that the company proposes to buy.
• Since the promoters are not permitted to participate in the buy back, the information
regarding their shareholding etc.,
is not required to be given.
2) File a copy of special resolution with SEBI and concerned stock exchanges where the
shares of eh company are listed within 7 days of passing such resolution.
3) File a Declaration of Solvency with SEBI in the prescribed form, duly verified by an
affidavit.
4) Nominate a compliance officer and an investor service center for compliance with the buy-
back regulations and to redress the grievances of the investors.
5) Appoint a merchant banker.
6) Make a public announcement of buy back (at least 7 days prior to commencement of buy
back). Public announcement shall also contain disclosures regarding details of brokers,
stock exchanges through which the buy-back of shares would be made and appointment of
merchant banker.
7) Copy of public announcement, along with the fees, to be filed with SEBI within 2 days of
making the announcement.
8) Buy back shall be made:
• Only on stock exchanges with electronic trading facility; and
• Only through the order matching mechanism except “all or none” order matching
system
The identity of the company as a purchaser shall appear on the electronic screen when the
order is placed.

9) The company and merchant banker to furnish the information to the stock exchange on a
daily basis regarding the shares purchased for buy back. Such information shall also be
published in a national daily.
10) The company to complete verification of acceptances within 15 days of the payout.
11) File the particulars of share certificates that are extinguished and destroyed with stock
exchanges within 7 days.
1.11. Buyback From Open Market Through Book-Building
The following are the methodologies and procedures that would be required in relation to buy back
of shares by private limited companies or unlisted companies:
1) Special resolutions, explanatory statement, solvency declaration, register maintenance, etc.
should be done.
2) The company should make a Letter of Offer to the shareholders after the resolution is
passed as also file a copy of the same with the Registrar of Companies.
3) The letter of offer should be sent to the shareholders within 21 days of filing of the Return
with the Registrar of Companies.
4) The letter of offer filed with ROC should disclose the company’s pre and post buyback
debt equity ratio.
5) A minimum period of 15 days and a maximum period of 30 days should be allowed to the
shareholders for acceptance of the offer.
6) If the shares accepted under buyback by shareholders are more than the shares under offer
by the company for buy back, a proportionate number of shares only can be bought back.
7) The company should verify within 15 days of acceptance of buyback offer from the
shareholders and rejection, if any, should be conveyed within 21 days.
8) The payment should be made within 7 days of completion of acceptance of offer for buy
back by way of opening escrow account with a bank and consideration should be made in
by cash or demand draft or by pay order. In case of rejection, share certificates should be
returned to the shareholders.

9) It is provided that the letter of offer should contain true, factual and material information
and that it should not be misleading in any manner, for which the directors should accept
the responsibility.
10) The letter of offer is not permitted to be withdrawn.
11) No funding is permissible from banks/ financial institutions.
12) Within 7 days of completion of buy back, that is payment of consideration, certificates of
shares that are bought back should be extinguished/physically destroyed within 7 days.

Bens, Nagar, Skinner and Wong (2003) examined and found that executives buyback decisions
are influenced by their incentives to manage their diluted EPS, when earnings fall short of the
desired level to maintain the past growth rate of diluted EPS. They assert that EPS is an important
earnings benchmark and executives are sensitive towards its financial reporting. The application
of tobit regression resulted in positive and statistically significant coefficients on measure of
managerial incentives to repurchase when earnings fall below required level. Their findings reveal
that EPS dilution is a key consideration is managerial equity financing and payout decisions. Thus,
accounting rules have economic consequences.
Hribar et al. (2006) found the evidence of large number of accretive stock buybacks of firms'
quarterly EPS forecasts among the corporations that would have missed analysts forecasts without
the repurchase. The investor discounts the information and is greatest for buybacks that help the
firms' to meet or beat the EPS forecasts. They found clustering of accretive repurchases among
firms with small negative ex-ante (pre-repurchase) earnings forecast errors. This is consistent with
the use of stock repurchase as an earnings management device. Firms exhibit increased tendency
to engage in stock repurchases, when EPS would fall short of analysts' forecast. They exhibit and
give one potential explanation of the reason why managers use repurchases as EPS benchmarking
to avoid large share price penalty or "earning torpedo". Their findings indicate that market does
not properly push up the stock of the firm that meet or beat analysts' EPS forecast.
Voss (2012) illustrated the mechanical effect of EPS and concluded that investors ignore the actual
motive of EPS-induced repurchase and the investors are encouraging firms to continue such
practice.
Brav et al. (2005) conducted a survey from the CFOs of the U.S corporations and 76.1 % of the
respondents cited increasing EPS is an important factor affecting their shareholder buyback
decisions. Again, two different yet notable angles were expressed by executives; One school of
thought purports that buyback reduces number of outstanding shares which automatically increases
the EPS, the other set of executives opine EPS enhancement induced buyback is done only when
funds could not earn the desired cost of capital. Hence, the EPS induced buyback is intentionally
done by some executives.

Dhanani and Roberts (2009) reported similar results that the financial managers of non-
investment companies demonstrated that EPS level are of importance to investors. Almost 76%
respondents agreed that repurchase programs are used in this capacity as earnings are distributed
across a small number of shares.
Badrinath, Varaiya and Ferling (2001) conducted a study over a sample of firms and results
implied that repurchase firms are effectively bridging the gap between their EPS growth rates and
with their peers who do not buyback. They clearly accorded that the firms which got the most rev-
up for their EPS growth are those which are under-performing, under-leveraged and less-
profitable.
Weisbenner (2000) connected the form of executive compensation as potential explanation for
the growth in share repurchases. He examined that the total options and executives stock options
are contributing to dilution of EPS. He found the results that size of stock option program is a
strong predictor of the company's share repurchase activity and is more apt for higher stock returns
focusing over preventing dilution of earnings.
Dobbs and Rehm(2005) outlined that there is a fine difference in increasing the underlying value
and increasing the reported earnings with the employment if buyback. The reason is that the return
on operating income does not magnify and the P/E ratio drops ultimately, when the excess cash is
paid in the form of buyback. Nevertheless, buyback is advantageous to saving tax penalty on
excess cash. While allowing to reach the EPS targets without looking at the long-term health of
the companies, board runs the risk of promoting only short-term effects of buyback. Thus,
executives shall chalk out a significant point of difference between fundamental value
enhancement with the improvement in performance and purely accounting effect of buyback on
EPS, Then only, they can use buybacks efficiently.
Oded and Michel(2008) showed that shareholders are well off under all the policies but the EPS
is largely maximized through share buybacks. But the decision to use surplus cash for share
buyback has no effect on the overall wealth of the shareholders existing at the time zero. They
stated that in imperfect markets buybacks are beneficial in maximizing overall wealth when firms

believe one or another reasons-undervaluation r generation of excess cash given optimum mix of
assets. Repurchases are good news because the Excess cash is returned to shareholders and there
is change in mix of risky assets to total assets yielding a higher return on investments by the
company in future. They believe achieving higher EPS requires firms to maintain at least the same
level of margins as in the previous years.
In India, Mishra (2004), Gupta(2006), Raval (2012) conducted a few studies with regard to
impact of buyback over Indian companies. Almost all of them found the evidence that majority of
the companies witnessed marked increase in EPS. Our motive is to check Indian companies on
EPS parameter and find out the underlying reasons for the same.

3.1. Definition Of Research

According to Philip Kotler, Marketing research is the systematic design, collection, analysis &
reporting of data & finding relevant to a specific marketing situation facing the company.
3.2. Research Problem Statement

After doing the literature review and understanding the motives of the Buyback of Shares in Indian
companies and benefits achieved there by, question arises whether these size of Share Buyback
(share repurchase) are positively or negatively affecting the Stock return on NSE and BSE. The
share price movements in the shares after share Buyback are not noticed very volatile in the
literature survey. The problem encounter in the study is how the size of Share Buyback
(repurchase) impact the stock return. This report gaps lead to the following objectives of the study.
3.3. Objectives of Study

• To investigate the impact of share buyback announcement on the return per share of the
companies.
• To investigate the impact of Size of share buyback announcement on the return per share
of the companies.
• To examine whether an organization can consider Share Buyback as a way to grow
strategically and financially.
• To examine whether an organization can consider Share Buyback as a way to increase
market share in the stock market.
• To examine whether there is any significant relation between size of share Buyback and
return on stock of companies available on NSE and BSE.
3.4. Research Design

A research design lays the foundation for conducting the project and ensures that the research plan
is conducted efficiently and effectively. This research has been carried out to explore the literature
review on the Share Buyback and also as to how it has an impact on the stock return. The research
design was an analytical research design.

3.5. Sampling Plan
3.5.1. Population
Population is set from which samples are drawn;
population here is taken form data available on NSE, BSE and SEBI.
3.5.2. Sample Size

A sample is the subset of the population it comprises only some elements of the population,
the sample is taken here for study is all the companies which are announced for share Buyback
during the year 2018 to year 2022 on NSE and BSE. Around 200 companies are taken.
3.5.3. Sampling Method

The sampling method that will be used for the purpose of study would be t-Test and Event
study analysis.
3.5.4. Sampling Area

Companies which are listed on NSE & BSE.
3.6. Type of Data
Secondary Data
Announcement report
Share Price Current Market Price
of Share Buyback

3.6.1. Secondary data

Secondary Data is used in this study. Data gathered and recorded by someone else prior to
and for a purpose other than the current project.
3.7. Sources of Data

Data available on Share Buyback will be used for Secondary data collection and online articles,
past research papers articles, journals etc. are used, data is available on the site of NSE, BSE and
SEBI.
3.8. Scope of The Study

This dissertation covers research over two periods- At the time when share Buyback was
announced and at the time when share Buyback was actually completed. The study has been made
with regard to two type of share Buyback- Tender offer and Open market offer.
3.9. Limitations of Study

• It is difficult to find out the impact of share repurchase on stock return in the situation
where the whole market is down.
• Sometimes promoters don’t want to show the actual performance and create volatility in
the market during the share repurchase.
• It is difficult to find out the impact of share repurchase on stock return in the situation
where the whole industry is falling down.
• Sometimes Hedgers create fake orders to gain short term profit in the market the case of
open market offer so, it is difficult to find out the accurate results.
• Time span of the study is limited as its only indicate the data of year 2018 to 2022.

4.1. What is event study?

An event study, or event-history analysis, examines the impact of an event on the financial
performance of a security, such as company stock.
An event study employs statistical methods, using time as the dependent variable and then looking
for variables that explain the duration of an event or the time until an event occurs.
If the same type of statistical analysis is used to analyze multiple events of the same type, a model
can predict how stock prices typically respond to a specific event.
4.1.1. How an event study works

An event study, also known as event-history analysis, employs statistical methods, using time
as the dependent variable and then looking for variables that explain the duration of an
event—or the time until an event occurs.
Event studies that use time in this way are often employed in the insurance industry to
estimate mortality and compute life tables. In business, these types of studies may instead be
used to forecast how much time is left before a piece of equipment fails. Alternatively, they
could be used to predict how long until a company goes out of business.

4.1.2. Event Study Methodology

Theoretically, a stock price takes into account all available information and expectations
about the future. According to this theory, it is possible to analyze the effect of a specific event
on a company by looking at the associated impact on the company's stock.
The market model is the most common analysis used for an event study. This methodology
looks at the actual returns of a baseline reference market and tracks the correlation of a
company's stock with the baseline.
The market model monitors the abnormal returns on the specific day of an event, studying the
stock's returns and comparing them to the normal or average returns. The difference is the
actual impact on the company. This technique can be used over time, analyzing consecutive
days to understand how an event affects a stock over time.
An event study can reveal greater market trends or patterns. If the same type of model is used
to analyze multiple events of the same type, it can predict how stock prices typically respond
to a specific event.
• Examine the impact of an event on financial markets

• Study the impact of public information disclosures (news or company announcements)
on asset returns
• It can be used as a test of market efficiency
Examples:
• Impact of a takeover on the acquiring firm’s share price
• Impact of dividend announcements on a firms’ share price
• Impact of financial crisis on exchange rates
4.1.3. How to measure the event’s impact?

How can we be sure that the return on event day is due to this event and not something else
that also happened on the same day?

• Construct the counterfactual: what if this event had not occurred?

• Compare that ‘expected return’ with the actual return
• Check if they are different
4.2. What is t-Test?
A t-test is an inferential statistic used to determine if there is a significant difference between the
means of two groups and how they are related. T-tests are used when the data sets follow a normal
distribution and have unknown variances, like the data set recorded from flipping a coin 100 times.
The t-test is a test used for hypothesis testing in statistics and uses the t-statistic, the t-distribution
values, and the degrees of freedom to determine statistical significance.
A t-test is an inferential statistic used to determine if there is a statistically significant difference

between the means of two variables. The t-test is a test used for hypothesis testing in statistics.
Calculating a t-test requires three fundamental data values including the difference between the
mean values from each data set, the standard deviation of each group, and the number of data
values. T-tests can be dependent or independent.

4.2.1. t-Test Formula

Calculating a t-test requires three fundamental data values. They include the difference
between the mean values from each data set, or the mean difference, the standard deviation
of each group, and the number of data values of each group.
This comparison helps to determine the effect of chance on the difference, and whether the
difference is outside that chance range. The t-test questions whether the difference between
the groups represents a true difference in the study or merely a random difference.
The t-test produces two values as its output: t-value and degrees of freedom. The t-value, or
t-score, is a ratio of the difference between the mean of the two sample sets and the variation
that exists within the sample sets.
The numerator value is the difference between the mean of the two sample sets. The
denominator is the variation that exists within the sample sets and is a measurement of the
dispersion or variability.
This calculated t-value is then compared against a value obtained from a critical value table
called the T-distribution table. Higher values of the t-score indicate that a large difference
exists between the two sample sets. The smaller the t-value, the more similarity exists between
the two sample sets.
4.2.2. Paired Sample T-Test

The correlated t-test, or paired t-test, is a dependent type of test and is performed when the
samples consist of matched pairs of similar units, or when there are cases of repeated
measures. For example, there may be instances where the same patients are repeatedly tested
before and after receiving a particular treatment. Each patient is being used as a control sample
against themselves.
This method also applies to cases where the samples are related or have matching
characteristics, like a comparative analysis involving children, parents, or siblings.
The formula for computing the t-value and degrees of freedom for a paired t-test is:

where:mean1 and mean2=The average values of each of the sample sets

(diff)=The standard deviation of the differences of the paired data values
n=The sample size (the number of paired differences)
n−1=The degrees of freedom
Degrees of Freedom =n1+n2−2

where:n1 and n2=Number of records in each sample set
4.2.3. Which T-Test to Use?

The following flowchart can be used to determine which t-test to use based on the
characteristics of the sample sets. The key items to consider include the similarity of the
sample records, the number of data records in each sample set, and the variance of each sample
set.

4.3. t-Test Analysis of Open market Buyback offer
Objective:
Hypothesis:
H0: There is no significant difference between the Abnormal return & Return.
H1: There is a significant difference between the Abnormal return & Return.
Significant Level: 0.05
If p>0.05, We accept the null hypothesis
Else, We reject the null hypothesis
4.3.1. t-Test analysis of Share Buyback during the year 2022-23

Abnormal
Return
(Current
Return
Date Name (Return -
price/Previous
Price - 1) Expected
Return)
23-Jan-23 KDDL Limited 0.08 -0.03
13-Jan-23 VLS Finance Limited 0.15 0.04
3-Jan-23 Indian Energy Exchange Limited 0.04 -0.07
15-Dec-22 One 97 Communications Limited 0.28 0.17
14-Dec-22 Bajaj Consumer Care Limited -0.06 -0.17
6-Dec-22 Infosys Limited -0.04 -0.15
5-Dec-22 Jenburkt Pharmaceuticals Limited 0.11 -0.01
11-Nov-22 Windlas Biotech Limited 0.11 0.00
1-Nov-22 Kaveri Seed Company Limited 0.15 0.04
13-Aug-22 Mindteck (India) Limited 0.15 0.03
10-Aug-22 TCI Express Limited 0.17 0.06
13-Jul-22 Techno Electric & Engineering Company Limited 0.01 -0.10
12-Jul-22 Marksans Pharma Limited 0.21 0.10
4-Jul-22 Route Mobile Limited 0.25 0.13
30-Jun-22 Bajaj Auto Limited 0.11 0.00
20-May-22 Cigniti Technologies Limited 0.20 0.09
11-May-22 SMC Global Securities Limited 0.10 -0.01
4-Apr-22 UPL Limited 0.05 -0.06
14-Mar-22 Pennar Industries Limited 0.14 0.03
8-Feb-22 Emami Limited 0.05 -0.07
Expected
Return 0.11

t-Test: Two-Sample t-Test
Abnormal
Return Return
-3.33067E-
Mean 0.114068475 17
Variance 0.007868145 0.007868145
Observations 20 20
Hypothesized Mean Difference 0
df 38
t Stat 4.066581366
P(T<=t) one-tail 0.000115825
t Critical one-tail 1.68595446
P(T<=t) two-tail 0.000231651
t Critical two-tail 2.024394164
0.50
0.40
0.30
0.20
0.10
0.00
-0.10
-0.20
-0.30
Return Abnormal Return
Interpretation:
As per p-value of t test is 0.00232 which is less than 5 % level of significance so we reject null
hypothesis which means that there is a significant different between pre and post share Buyback
during the year 2022-23 in open market Buyback. it means that stock returns of the companies are
increased substantially after the Buyback offer.

Abnormal
Return
(Current
Return
Date Name (Return -
price/Previous
Price - 1) Expected
Return)
11-Aug-21 Balrampur Chini Mills Limited 0.13 -0.17
26-Jul-21 Tanla Platforms Limited 0.09 -0.21
23-Jun-21 Infosys Limited 0.10 -0.20
1-Jun-21 Navneet Education Ltd. 0.23 -0.07
6-Apr-21 Insecticides (India) Limited 0.64 0.34
5-Mar-21 Jagran Prakashan Limited 0.30 0.00
1-Mar-21 Nava Bharat Ventures Ltd. 0.41 0.11
12-Feb-21 The Anup Engineering Limited 0.30 0.00
9-Feb-21 VRL Logistics Limited 0.30 0.00
3-Feb-21 Atul Limited 0.41 0.12
2-Feb-21 Freshtrop Fruits Limited 0.39 0.09
Expected
Return 0.30
Abnormal
Return Return
Mean 0.299079305 0
Variance 0.026623563 0.026624
Observations 11 11
df 20
t Stat 4.298675068
P(T<=t) one-tail 0.000174973
P(T<=t) two-tail 0.000349946

1.20
1.00
0.80
0.60
0.40
0.20
0.00
-0.20
Interpretation:
Abnormal
Return
(Current
Return
Date Name (Return -
price/Previous
Price - 1) Expected
Return)
24-Dec-20 IIFL Securities Limited 0.29 -0.50
26-Nov-20 Sreeleathers Limited 0.52 -0.28
12-Nov-20 Hindustan Petroleum Corporation Limited 0.35 -0.45
19-Oct-20 Rane Brake Lining Ltd. 0.34 -0.46
14-Oct-20 Motilal Oswal Financial Services Limited 0.35 -0.45
30-Jul-20 Fineotex Chemical Limited 0.47 -0.33
24-Jul-20 eClerx Services Limited 0.66 -0.13
1-Jun-20 Kalpataru Power Transmission Limited 0.69 -0.10
5-May-20 JK Paper Limited 0.12 -0.68

15-Apr-20 OnMobile Global Limited 1.09 0.29

13-Apr-20 Polyplex Corporation Limited 1.56 0.77
7-Apr-20 Delta Corp Limited 1.06 0.26
27-Mar-20 STERLITE TECHNOLOGIES LIMITED 1.40 0.60
26-Mar-20 DALMIA BHARAT LIMITED 0.75 -0.04
26-Mar-20 RAMKRISHNA FORGINGS LIMITED 1.89 1.10
26-Mar-20 Sun Pharmaceutical Industries 0.45 -0.34
24-Mar-20 Emami Limited 0.76 -0.03
17-Feb-20 GOLDIAM INTERNATIONAL LIMITED 1.42 0.63
29-Jan-20 GHCL Limited -0.27 -1.07
22-Jan-20 Dishman Carbogen Amcis Limited 2.01 1.21
Expected
Return 0.80
Abnormal
Return Return
Mean 0.795851663 0
Variance 0.366921183 0.366921
Observations 20 20
df 38
t Stat 4.154758027
P(T<=t) one-tail 8.89684E-05
P(T<=t) two-tail 0.000177937
4.00
3.00
2.00
1.00
0.00
-1.00
-2.00

Interpretation:
Abnormal
Return
(Current
Return
Date Name (Return -
price/Previous
Price - 1) Expected
Return)
16-Dec-19 JAGRAN PRAKASHAN LIMITED -0.16 -0.28
15-Nov-19 PENNAR INDUSTRIES LIMITED -0.33 -0.44
7-Aug-19 VAIBHAV GLOBAL LIMITED 1.41 1.30
13-Jun-19 Nava Bharat Ventures Limited -0.04 -0.15
23-May-19 Action Construction Equipment Limited -0.19 -0.30
1-Apr-19 Aurionpro Solutions Limited -0.14 -0.25
27-Mar-19 Orbit Exports Limited 0.29 0.18
20-Mar-19 Infosys Limited 0.12 0.00
7-Feb-19 Cyient Limited 0.14 0.03
5-Feb-19 Persistent Systems Limited 0.25 0.14
3-Jan-19 Selan Exploration Technology Ltd. -0.13 -0.24
Expected
Return 0.11
Abnormal
Return Return
Mean 0.111626724 0
Variance 0.224135788 0.22414

Observations 11 11
df 20
t Stat 0.55296026
P(T<=t) one-tail 0.293209444
P(T<=t) two-tail 0.586418888
3.00
2.50
2.00
1.50
1.00
0.50
0.00
-0.50
-1.00
Interpretation:
As per p-value of t test is 0.58642 which is more than 5 % level of significance so we accept null
hypothesis which means that there is no significant different between pre and post share Buyback
not volatile after the Buyback offer.

Abnormal
Return
(Current
Return
Date Name (Return -
price/Previous
Price - 1) Expected
Return)
14-Dec-18 Goldiam International Ltd 0.74 0.57
15-Nov-18 Oriental Cabon & Chemicals Ltd 0.21 0.03
14-Nov-18 Natco Pharma Limited -0.16 -0.34
26-Oct-18 Lakshmi Machine Works Limited 0.07 -0.11
4-Oct-18 TD Power Systems Limited 0.29 0.12
24-Sep-18 ICRA Limited -0.16 -0.33
17-Sep-18 Thyrocare Technologies Limited -0.10 -0.27
3-Aug-18 Music Broadcast Limited 0.10 -0.07
2-Jul-18 DCM Shriram Limited 0.75 0.57
28-Jun-18 Sreeleathers Limied 0.78 0.61
11-Jun-18 Mcleod Russel India Ltd. 0.21 0.04
29-May-18 Indiabulls Real Estate Limited -0.22 -0.40
31-Jan-18 BSE Limited -0.24 -0.41
Expected
Return 0.18
Abnormal
Return Return
Mean 0.1753 0
Variance 0.13964 0.13964
Observations 13 13
df 24
t Stat 1.19599
P(T<=t) one-tail 0.12169
P(T<=t) two-tail 0.24338

1.50
1.00
0.50
0.00
-0.50
-1.00
Interpretation:

4.4. t-Test Analysis of Tender offer Buyback

Objective:
Hypothesis:
H0: There is no significant difference between the Abnormal return & Return.
H1: There is a significant difference between the Abnormal return & Return.

Date Name Return Abnormal
(Current Return
price/Previous (Return -
Price - 1) Expected
Return)
23-Dec-22 Softsol India Limited -0.09 -0.05

22-Dec-22 Jagran Prakashan Limited -0.04 0.00
20-Dec-22 Technocraft Industries (India) Limited 0.31 0.34
17-Dec-22 Tips Industries Limited -0.05 -0.01
16-Dec-22 eClerx Services Limited 0.01 0.05
15-Dec-22 Triveni Turbines Limited -0.05 -0.01
14-Dec-22 Kama Holdings Limited -0.10 -0.07
14-Dec-22 Triveni Engineering & Industries Limited -0.06 -0.02
5-Dec-22 Cosmo First Limited -0.23 -0.19
9-Nov-22 Orbit Exports Limited -0.16 -0.12
3-Nov-22 Dhanuka Agritech Limited 0.07 0.11
25-Oct-22 Garware Technical Fibres Limited -0.09 -0.05
17-Oct-22 Tanla Platforms Limited -0.08 -0.04
21-Sep-22 Shyam Century Ferrous Limited -0.09 -0.06
5-Sep-22 CARE Ratings Limited 0.33 0.36
27-Aug-22 Quick Heal Technologies Limited -0.16 -0.12
18-Aug-22 SIS Limited -0.12 -0.09
17-Aug-22 Suraj Limited 0.61 0.65
12-Aug-22 Granules India Limited 0.21 0.25
5-Jul-22 Birlasoft Limited -0.30 -0.26
27-Jun-22 Matrimony.com Limited -0.23 -0.19
25-May-22 Zydus Lifesciences Ltd 0.35 0.39
23-May-22 Asahi Songwon Colors Limited -0.06 -0.02

20-May-22 Motilal Oswal Financial Services Limited -0.28 -0.24

3-May-22 Indiamart Intermesh Ltd -0.39 -0.35
27-Apr-22 Sarda Energy & Minerals Limited -0.27 -0.23
27-Apr-22 Sinclair Hotels Limited 0.37 0.41
4-Apr-22 GAIL (India) Limited 0.06 0.09
31-Mar-22 Filatex India Limited -0.12 -0.08
14-Feb-22 FDC Limited -0.11 -0.08
14-Feb-22 Gulf Oil Lubricants India Limited 0.02 0.06
14-Feb-22 Tata Consultancy Services Limited -0.08 -0.05
10-Feb-22 K.P.R. Mill Limited -0.21 -0.18
10-Feb-22 Mayur Uniquoters Limited -0.30 -0.26
5-Jan-22 James Warren Tea Ltd 0.01 0.05
Expected -0.04
Return

Mean -0.038056063 -9.31794E-18
Variance 0.047406124 0.047406124
Observations 35 35
df 68
t Stat -0.731182277
P(T<=t) one-tail 0.233589986
P(T<=t) two-tail 0.467179972
1.50
1.00
0.50
0.00
-0.50
-1.00

Interpretation:
during the year 2022-23 in Tender offer Buyback. it means that stock returns of the companies are

(Current Return
Price - 1) Expected
Return)
31-Dec-21 Ajanta Pharma Limited 0.02 -0.17
22-Dec-21 MOIL Limited 0.06 -0.13
7-Dec-21 MPS Limited 0.04 -0.16
3-Dec-21 Weizmann Limited 0.29 0.10
23-Nov-21 Nucleus Software Exports Limited -0.04 -0.24
11-Nov-21 eClerx Services Limited 0.10 -0.10
2-Nov-21 AksharChem (India) Limited -0.09 -0.28
2-Nov-21 S H Kelkar and Company Limited 0.22 0.03
28-Oct-21 Gandhi Special Tubes Ltd -0.03 -0.22
31-Aug-21 Rishiroop Ltd. 0.23 0.04
30-Aug-21 Star Cement Limited -0.04 -0.24
11-Aug-21 R Systems International Ltd. 0.42 0.23
4-Aug-21 Shriram Pistons and Rings Ltd -0.08 -0.27
21-May-21 Aarti drugs Limited -0.09 -0.28
18-May-21 Welspun India Ltd. 0.67 0.48
28-Apr-21 Infobeans Technologies Limited 0.98 0.79
23-Apr-21 Bharat Rasayan Limited 0.40 0.21
23-Apr-21 Quick Heal Technologies Limited 0.36 0.16
26-Mar-21 SIS Limited 0.03 -0.17
23-Mar-21 Gail (India) Limited 0.06 -0.13
10-Mar-21 Archidply Industries Limited -0.15 -0.34
23-Feb-21 Savita Oil Technologies Limited 0.22 0.03
18-Feb-21 Engineers India Limited 0.15 -0.04
17-Feb-21 NIIT Ltd. -0.21 -0.40
16-Feb-21 Gujarat Apollo Industries Limited -0.03 -0.22

15-Feb-21 Smartlink Holdings Limited 0.31 0.11

12-Feb-21 Suprajit Engineering Ltd 0.58 0.39
11-Feb-21 Garware Technical Fibres Limited 0.18 -0.01
29-Jan-21 National Aluminium Company Limited 0.29 0.10
25-Jan-21 Neelamalai Agro Industries Ltd. 0.85 0.66
6-Jan-21 Asahi Songwon Colors Limited 0.25 0.06
4-Jan-21 Indian Toners & Developers Limited 0.18 -0.01
Expected 0.19
Return
Return Abnormal
Return
Mean 0.191685886 -5E-18
Variance 0.07909398 0.07909
Observations 32 32
df 62
t Stat 2.726329945
P(T<=t) one-tail 0.004157906
P(T<=t) two-tail 0.008315811
2.00
1.50
1.00
0.50
0.00
-0.50
-1.00

Interpretation:

(Current Return
Price - 1) Expected
Return)
28-Dec-20 Ajanta Pharma Limited 0.21 -0.49

24-Dec-20 INDUSTRIAL AND PRUDENTIAL 0.72 0.02
INVESTMENT COMPANY LIMITED
15-Dec-20 Jullundhur Motor Agency (Delhi) Ltd 0.36 -0.33
21-Nov-20 Kanchi Karpooram Limited 0.36 -0.34
21-Nov-20 Tata Consultancy Services Ltd 0.23 -0.46
19-Nov-20 Wipro Ltd. 0.32 -0.38
12-Nov-20 NMDC Ltd 0.40 -0.30
4-Nov-20 NTPC Ltd 0.20 -0.49
21-Oct-20 KIOCL Limited 0.14 -0.56
12-Oct-20 FDC Limited -0.01 -0.71
29-Sep-20 Magna Electro Castings Limited 0.13 -0.57
22-Sep-20 RITES Limited 0.13 -0.57
31-Aug-20 Just Dial Limited - 0.74 0.04
14-Aug-20 MPS Limited 0.51 -0.18
12-Aug-20 Triveni Engineering & Industries Limited 0.40 -0.30
6-Aug-20 Balrampur Chini Mills Ltd. 0.28 -0.42
31-Jul-20 Gokul Refoils and Solvent Limited 0.14 -0.55
29-Jun-20 Granules India Limited 0.57 -0.13
19-Jun-20 Coral India Finance and Housing Limited 0.46 -0.24
29-May-20 TANLA SOLUTIONS LIMITED 1.70 1.00
30-Apr-20 ADITYA VISION LIMITED - 8.95 8.26
26-Mar-20 TIPS INDUSTRIES LIMITED 0.33 -0.37
19-Mar-20 ASTER DM HEALTHCARE LIMITED -0.12 -0.81
2-Mar-20 THOMAS COOK (INDIA) LIMITED -0.41 -1.11

Expected 0.70
Return
Return Abnormal
Return
Mean 0.69796461 0
Variance 3.23852011 3.23852
Observations 24 24
df 46
t Stat 1.34354038
P(T<=t) one-tail 0.09284379
P(T<=t) two-tail 0.18568758
20.00
15.00
10.00
5.00
0.00
-5.00
Interpretation:


(Current Return
Price - 1) Expected
Return)
27-Dec-19 Kaveri Seed Company Limited 0.14 0.14

26-Dec-19 Eris Lifesciences Limited 0.18 0.18
18-Dec-19 Freshtrop Fruits Limited - 0.13 0.13
21-Nov-19 Automobile Corporation of Goa Limited 0.02 0.02
21-Nov-19 Greaves Cotton Limited - 0.06 0.06
20-Nov-19 MOIL Limited 0.13 0.14
15-Nov-19 J. B. Chemicals & Pharmaceuticals Limited 0.51 0.51
25-Oct-19 M/S. Gandhi Special Tubes Limited -0.16 -0.15
10-Oct-19 NIIT LIMITED 0.13 0.14
4-Oct-19 Adani Ports & Special Economic Zone Limited -0.06 -0.06
30-Sep-19 BSE Limited -0.05 -0.05
23-Sep-19 Gandhi Special Tubes Limited -0.04 -0.04
1-Aug-19 Smartlink Holdings Limited 0.13 0.13
19-Jul-19 FDC Ltd. 0.12 0.13
5-Jul-19 Expleo Solutions Limited (formerly known as -0.28 -0.28
SQS India BFSI Limited)
5-Jul-19 Sasken Technologies Limited -0.29 -0.29
5-Jul-19 SKP Securities Limited 0.09 0.10
3-Jul-19 Star Cement Limited -0.17 -0.17
3-Jul-19 Welspun Corp Limited 0.07 0.08
26-Jun-19 eClerx Services Limited -0.44 -0.44
21-Jun-19 GeeCee Ventures Limited -0.15 -0.15
17-Jun-19 S H Kelkar & Company Limited -0.09 -0.08
12-Jun-19 Wipro Ltd -0.09 -0.09
11-Jun-19 Balrampur Chini Mills Limited 0.12 0.12
11-Jun-19 Triveni Engineering & Industries Ltd -0.18 -0.18
10-Jun-19 Glance Finance Ltd. -0.31 -0.30
7-Jun-19 Savita Oil Technologies Limited -0.17 -0.17
31-May-19 Aarti Drugs Limited -0.18 -0.17
16-May-19 Frontline Securities Limited 0.57 0.57
10-May-19 James Warren Tea Ltd -0.14 -0.14
25-Apr-19 Quick Heal Technologies -0.14 -0.13
16-Apr-19 Monte Carlo Fashions Limited -0.15 -0.14

12-Apr-19 Tuliv Developers Limited -0.19 -0.19

5-Apr-19 Zenith Fibres Limited -0.07 -0.07
4-Apr-19 Metroglobal Limited 0.23 0.23
27-Mar-19 Coal India Limited - 0.10 0.11
27-Mar-19 Shervani Industrial Syndicate Ltd. 0.17 0.17
12-Mar-19 Baba Arts Limited 0.06 0.07
28-Feb-19 Bosch Limited - -0.02 -0.02
28-Feb-19 PBM Polytex Limited -0.03 -0.02
28-Feb-19 Tech Mahindra Limited 0.03 0.03
21-Feb-19 Dhanuka Agritech Limited - -0.11 -0.10
11-Feb-19 Oil India Limited 0.08 0.09
6-Feb-19 Indian Energy Exchange Limited 0.03 0.04
5-Feb-19 Shanthi Gears Limited 0.05 0.05
4-Feb-19 HEG Limited -0.38 -0.38
22-Jan-19 R Systems International Limited -0.01 0.00
17-Jan-19 Just Dial Limited – 0.33 0.33
15-Jan-19 NMDC Limited 0.21 0.21
3-Jan-19 Tata Investment Corporation Limited -0.03 -0.02
Expected -0.01
Return
Return Abnormal
Return
Mean -0.005355609 -8E-19

Variance 0.039006498 0.03901
Observations 50 50
df 98
t Stat -0.135584619
P(T<=t) one-tail 0.446213887
P(T<=t) two-tail 0.892427775

1.50
1.00
0.50
0.00
-0.50
-1.00
Interpretation:
Date Name Return Abnorma

(Current l Return
price/Previou (Return -
s Price - 1) Expected
Return)
29-Dec-18 Mphasis Limited - . 0.05 0.01

27-Dec-18 Oil and Natural Gas Corporation Limited 0.16 0.12
24-Dec-18 Cochin Shipyard Limited - 0.01 -0.03
21-Dec-18 NHPC Limited -0.04 -0.08
21-Dec-18 Techno Electric and Engineering Company Limited 0.02 -0.02
21-Dec-18 Triveni Turbine Limited -0.10 -0.15
19-Dec-18 Indian Oil Corporation Limited 0.12 0.08
10-Dec-18 National Aluminium Company Limited (NALCO) - 0.00 -0.04
10-Dec-18 Redington (India) Limited 0.09 0.05

7-Dec-18 S K F India Limited 0.09 0.05

6-Dec-18 Bharat Heavy Electricals Limited 0.04 0.00
Expected 0.04
Return

Return Abnormal
Return
Mean 0.040322167 5.7E-18
Variance 0.005661418 0.00566
Observations 11 11
df 20
t Stat 1.256789661
P(T<=t) one-tail 0.111655222
P(T<=t) two-tail 0.223310444
0.40
0.30
0.20
0.10
0.00
-0.10
-0.20
-0.30
Interpretation:

4.5. Summary of data analysis
Objectives t value P value Accept/

reject null
hypothesis
Objective 1
Hypothesis:
H0: There is no significant difference between
the Abnormal return & Return.
H1: There is a significant difference between the
Abnormal return & Return.
For the year 2022-23 : Open market offer 2.0243942 0.0002317 Reject
For the year 2019-20 : Open market offer 2.0859634 0.5864189 Accept
For the year 2018-19 : Open market offer 2.0638986 0.2433839 Accept
Objective 2
Hypothesis:
H0: There is no significant difference between
the Abnormal return & Return.
H1: There is a significant difference between the
Abnormal return & Return.
For the year 2022-23 : Tender offer 1.9954689 0.46718 Accept

For the year 2021-22 : Tender offer 1.9989715 0.0083158 Reject

5.1. Findings
After completing t test, I found that 6 out of 10 t test accept null hypothesis which means in that 6
study there is no impact of Share Buyback on different stock returns of Indian stock market but
there is 4 t test in which we found that there is impact of Share Buyback on different stock returns
of Indian stock market. These 4 tests are:
I. t-Test analysis of Share Buyback during the year 2022-23 (Open Market offer)
II. t-Test analysis of Share Buyback during the year 2021-22 (Open Market offer)
III. t-Test analysis of Share Buyback during the year 2020-21 (Open Market offer)
IV. t-Test analysis of Share Buyback during the year 2021-22 (Tender offer)
1. t-Test analysis of Share Buyback during the year 2022-23 (Open Market offer):

4. t-Test analysis of Share Buyback during the year 2021-22 (Tender offer):
5.2. Conclusion
• From the above analysis, we can see that 3 out of 4 t test analysis in open market offer is
rejected which means there is a significant difference between the share buyback and
stock return, it means there is impact of share buyback on stock return.
• So that, in open market buyback, the impact of share buyback on stock return is more
than the tender offer buyback.
• As open market deal is done on trading hours of market, we may assume that the stock
price is more volatile because of huge quantity is traded on stock exchange.
• It can also affect the whole index (Nifty & Sensex) if the quantity or issue size is huge
provided by the company.
• We can see that only 1 out of 4 t Test analysis in Tender offer is rejected (Year 2021-22),
which means the impact of share buyback on stock return is only seen in the year 2021-
22. It means there is no difference between share buyback event and stock return in the
year 2022, 2020, 2019 & 2018.
• In tender offer, the quantity is fixed and most of the time it is buy backed by the big
financial institution. So, we may assume that the stock price is less volatile during the
market hours.
• In open market offer, most of the stock price is increase after the buyback offer as we can
see from the annexure while, most of the stock price is decreases after buy back in tender
offer.

Bibliography
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dilution, and stock repurchases. Journal of Accounting and Economics, 36(1), 51-90.
Hribar, P., Jenkins, N. T., & Johnson, W. B. (2006). Stock repurchases as an earnings management
device. Journal of Alfounting and Economics, 41(1), 3-27.
Oded, J., & Michel, A. (2008). Stock repurchases and the EPS enhancement fallacy. Financial
Analysts Journal, 64(4), 62-75.
Weisbenner, S. J. (2000, May). Corporate share repurchases in the 1990s: What role do stock
options play? In AFA 2002 Atlanta Meetings.
Brav, A., Graham, J. R., Harvey, C. R., &Michaely, R. (2005) Payout policy in the 21st century.
Journal of financial economics, 77(3), 483-527.
Dhanani, A., & Roberts, R. (2009). Corporate Share Repurchases: The Perceptions and Practices
of UK Financial Managers and Corporate Investors. ICAS.
Badrinath, S. G., Varaiya, N. P., &Ferling, R. L. (2001). Share repurchase: To buy or not to buy.
Financial Executive, 17(3), 43-43.
Dobbs, R., &Rehm, W. (2005). The value of share buybacks. McKinsey Quarterly, 3, 54
Voss, J. (2012). Why do Firms Repurchase Stock?. Major Themes in Economics, 14, 55-75.
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Journal of financial economics, 9(2), 139-183.

Vermaelen, T. (2005). Share repurchases. Foundations and Trends in Finance, 1(3).
Mishra, A. (2005). An empirical analysis of share buybacks in India. ICFAI Journal of Applied
Finance, 11(5), 5-24.
Gupta, L. C., Jain, N., & Kumar, A. (2005). Corporate Practices regarding Buyback of Shares and
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Raval, P. (2012). Do Buyback of Shares Increase Shareholder Value? Available at SSRN 2187285.

Webography
https://www.sebi.gov.in/sebiweb/home/HomeAction.do?doListing=yes&sid=3&ssid=14&smid=
116
https://www.sebi.gov.in/sebiweb/home/HomeAction.do?doListing=yes&sid=3&ssid=14&smid=
116
https://www.moneycontrol.com/
https://www.investopedia.com/terms/t/t-test.asp
https://www.investopedia.com/terms/s/sharerepurchase.asp
https://www.investopedia.com/terms/e/eventstudy.asp#:~:text=An%20event%20study%20is%20
an,react%20to%20a%20given%20event.
https://www.moneycontrol.com/news/business/stocks/emami-approves-rs-186-crore-buyback-
plan-at-rs-450-a-share-10303751.html
https://www.moneycontrol.com/indian-indices/nifty-50-9.html
https://www.bseindia.com/sensex/code/16/
https://www.nseindia.com/

Annexure
List of share buyback (Tender offer) during the year 2018 to 2022
Price Price
Buyback Capital
Date Name Equity (qty) Before After
price bought back
Buyback Buyback
12/23/22 Softsol India Limited 2058524.00 170 349949080 168 153
Jagran Prakashan
12/22/22 Limited 46000000.00 75 3450000000 74 71
Technocraft Industries
12/20/22 (India) Limited 1500000.00 1000 1500000000 900 1175
12/17/22 Tips Industries Limited 126000.00 2600 327600000 1821 1732
eClerx Services
12/16/22 Limited 1714285.00 1750 2999998750 1422 1435
Triveni Turbines
12/15/22 Limited 5428571.00 350 1899999850 294 279
Kama Holdings
12/14/22 Limited 34500.00 14500 500250000 13643 12221
Triveni Engineering &
12/14/22 Industries Limited 22857142.00 350 7999999700 281 264
12/5/22 Cosmo First Limited 1009345.00 1070 1079999150 843 651
11/9/22 Orbit Exports Limited 408163.00 245 99999935 192 161
Dhanuka Agritech
11/3/22 Limited 1000000.00 850 850000000 685 733
Garware Technical
10/25/22 Fibres Limited 240000.00 3750 900000000 3574 3270
Tanla Platforms
10/17/22 Limited 1416666.00 1200 1699999200 800 737
Shyam Century Ferrous
9/21/22 Limited 10000000.00 28 280000000 24 22
9/5/22 CARE Ratings Limited 2368000.00 515 1219520000 508 673
Quick Heal
8/27/22 Technologies Limited 5000000.00 300 1500000000 216 181
8/18/22 SIS Limited 1454545.00 550 799999750 450 394
8/17/22 Suraj Limited 900000.00 77 69300000 89 143
8/12/22 Granules India Limited 6250000.00 400 2500000000 310 375
7/5/22 Birlasoft Limited 7800000.00 500 3900000000 374 263
Matrimony.com
6/27/22 Limited 652173.00 1150 749998950 820 633
5/25/22 Zydus Lifesciences Ltd 11538461.00 650 7499999650 357 481
Asahi Songwon Colors
5/23/22 Limited 240000.00 400 96000000 336 316
Motilal Oswal
Financial Services
5/20/22 Limited 1454545.00 1100 1599999500 918 666

Indiamart Intermesh
5/3/22 Ltd 160000.00 6250 1000000000 6858 4217
Sarda Energy &
4/27/22 Minerals Limited 811108.00 1500 1216662000 1305 957
4/27/22 Sinclair Hotels Limited 700000.00 143 100100000 95 130
4/4/22 GAIL (India) Limited 56985463.00 190 10827237970 101 107
3/31/22 Filatex India Limited 4250000.00 140 595000000 66 59
2/14/22 FDC Limited 2900000.00 475 1377500000 316 280
Gulf Oil Lubricants
2/14/22 India Limited 1416667.00 600 850000200 488 498
Tata Consultancy
2/14/22 Services Limited 40000000.00 4500 180000000000 3825 3502
2/10/22 K.P.R. Mill Limited 2236000.00 805 1799980000 720 566
Mayur Uniquoters
2/10/22 Limited 6250000.00 650 4062500000 563 395
1/5/22 James Warren Tea Ltd 842717.00 295 248601515 260 263
12/31/21 Ajanta Pharma Limited 1120000.00 2550 2856000000 1498 1532

12/22/21 MOIL Limited 33842668.00 205 6937746940 175 185
12/7/21 MPS Limited 944444.00 900 849999600 697 722
12/3/21 Weizmann Limited 1412515.00 60 84750900 53 69
Nucleus Software
11/23/21 Exports Limited 2267400.00 700 1587180000 592 566
eClerx Services
11/11/21 Limited 1063157.00 2850 3029997450 1584 1736
AksharChem (India)
11/2/21 Limited 169491.00 590 99999690 501 456
S H Kelkar and
11/2/21 Company Limited 2900000.00 210 609000000 156 191
Gandhi Special Tubes
10/28/21 Ltd 766616.00 550 421638800 427 414
8/31/21 Rishiroop Ltd. 640000.00 125 80000000 103 127
8/30/21 Star Cement Limited 8248580.00 150 1237287000 112 107
R Systems International
8/11/21 Ltd. 1333000.00 225 299925000 205 292
Shriram Pistons and
8/4/21 Rings Ltd 350000.00 1020 357000000 1021 940
5/21/21 Aarti drugs Limited 600000.00 1000 600000000 803 729
5/18/21 Welspun India Ltd. 16666666.00 120 1999999920 83 139
Infobeans Technologies
4/28/21 Limited 431717.00 232 100158344 165 327
Bharat Rasayan
4/23/21 Limited 93472.00 11500 1074928000 10089 14157
Quick Heal
3/26/21 SIS Limited 1818181.00 550 999999550 421 432

3/23/21 Gail (India) Limited 69756641.00 150 10463496150 102 108

Archidply Industries
3/10/21 Limited 2200000.00 37 81400000 36 30
Savita Oil
Engineers India
2/18/21 Limited 69869047.00 84 5868999948 77 89
2/17/21 NIIT Ltd. 9875000.00 240 2370000000 197 156
Gujarat Apollo
Smartlink Holdings
2/15/21 Limited 3325000.00 95 315875000 89 116
Suprajit Engineering
2/12/21 Ltd 1500000.00 320 480000000 215 340
Garware Technical
2/11/21 Fibres Limited 317391.00 2300 729999300 2278 2696
National Aluminium
1/29/21 Company Limited 130279083.00 58 7491047273 47 61
Neelamalai Agro
1/25/21 Industries Ltd. 25350.00 1600 40560000 1593 2943
Asahi Songwon Colors
1/6/21 Limited 245000.00 330 80850000 251 315
Indian Toners &
1/4/21 Developers Limited 2311610.00 160 369857600 125 148
12/28/20 Ajanta Pharma Limited 735000.00 1850 1359750000 1103 1331

Industrial & prudential
12/24/20 investment company ltd 69500.00 1200 83400000 1006 1730
Jullundhur Motor
12/15/20 Agency (Delhi) Ltd 7450000.00 35 260750000 33 45
Kanchi Karpooram
11/21/20 Limited 220000.00 405 89100000 398 541
Tata Consultancy
11/21/20 Services Ltd 53333333.00 3000 159999999000 2677 3302
11/19/20 Wipro Ltd. 237500000.00 400 95000000000 349 460
11/12/20 NMDC Ltd 131243809.00 105 13780599945 93 130
11/4/20 NTPC Ltd 197891146.00 115 22757481790 88 106
10/21/20 KIOCL Limited 14174469.00 110 1559191590 140 160
10/12/20 FDC Limited 2163000.00 450 973350000 368 363
Magna Electro Castings
9/29/20 Limited 400000.00 175 70000000 159 180
9/22/20 RITES Limited 9698113.00 265 2569999945 239 270
8/31/20 Just Dial Limited - 3142857.00 700 2199999900 386 670
8/14/20 MPS Limited 566666.00 600 339999600 319 483


Balrampur Chini Mills
8/6/20 Ltd. 10000000.00 180 1800000000 129 165
Gokul Refoils and
7/31/20 Solvent Limited 32900000.00 12 394800000 16 18
6/29/20 Granules India Limited 12500000.00 200 2500000000 210 330
Coral India Finance
6/19/20 and Housing Limited 12400000.00 17 210800000 15 22
TANLA SOLUTIONS
5/29/20 LIMITED 19012345.00 81 1539999945 64 172
ADITYA VISION
4/30/20 LIMITED - 3350000.00 20 67000000 19 194
TIPS INDUSTRIES
3/26/20 LIMITED 1350000.00 140 189000000 86 114
ASTER DM
HEALTHCARE
3/19/20 LIMITED 5714285.00 210 1199999850 147 130
THOMAS COOK
3/2/20 (INDIA) LIMITED 26086956.00 58 1499999970 57 33
Kaveri Seed Company

12/27/19 Limited 2800000.00 700 1960000000 481 547
Eris Lifesciences
12/26/19 Limited 1739130.00 575 999999750 458 540
Freshtrop Fruits
12/18/19 Limited - 1000000.00 110 110000000 91 103
Automobile
Corporation of Goa
11/21/19 Limited 333000.00 600 199800000 565 576
Greaves Cotton
11/21/19 Limited - 13000000.00 175 2275000000 137 145
11/20/19 MOIL Limited 20281009.00 152 3082713368 145 164
J. B. Chemicals &
Pharmaceuticals
11/15/19 Limited 2954545.00 440 1299999800 386 582
M/S. Gandhi Special
10/25/19 Tubes Limited 900000.00 550 495000000 320 269
10/10/19 NIIT LIMITED 26800000.00 125 3350000000 91 103
Adani Ports & Special
Economic Zone
10/4/19 Limited 39200000.00 500 19600000000 418 392
9/30/19 BSE Limited 6764705.00 680 4599999400 183 174
Gandhi Special Tubes
9/23/19 Limited 900000.00 550 495000000 303 290
Smartlink Holdings
8/1/19 Limited 3650000.00 130 474500000 84 95

7/19/19 FDC Ltd. 3430000.00 350 1200500000 178 200

Expleo Solutions
7/5/19 Limited 460896.00 550 253492800 413 297
Sasken Technologies
7/5/19 Limited 2059243.00 825 1698875475 719 507
7/5/19 SKP Securities Limited 995000.00 70 69650000 33 36
7/3/19 Star Cement Limited 6800000.00 150 1020000000 123 102
7/3/19 Welspun Corp Limited 28888888.00 135 3899999880 140 151
eClerx Services
6/26/19 Limited 1746666.00 1500 2619999000 623 348
GeeCee Ventures
6/21/19 Limited 814815.00 135 110000025 118 100
S H Kelkar &
6/17/19 Company Limited 3300000.00 180 594000000 152 139
6/12/19 Wipro Ltd 323076923.00 325 104999999975 291 264
Balrampur Chini Mills
6/11/19 Limited 8438327.00 175 1476707225 153 171
6/11/19 Industries Ltd 10000000.00 100 1000000000 71 58
6/10/19 Glance Finance Ltd. 750000.00 50 37500000 48 33
Savita Oil
5/31/19 Aarti Drugs Limited 282100.00 900 253890000 149 122
Frontline Securities
5/16/19 Limited 1890027.00 40 75601080 12 19
5/10/19 James Warren Tea Ltd 2325000.00 115 267375000 111 95
Quick Heal
4/25/19 Technologies 6363636.00 275 1749999900 222 191
Monte Carlo Fashions
4/16/19 Limited 1000000.00 550 550000000 371 315
Tuliv Developers
4/12/19 Limited 480000.00 350 168000000 246 199
4/5/19 Zenith Fibres Limited 550000.00 55 30250000 57 53
4/4/19 Metroglobal Limited 4000000.00 56 224000000 53 65
3/27/19 Coal India Limited - 44680850.00 235 10499999750 243 268
Shervani Industrial
3/27/19 Syndicate Ltd. 415000.00 500 207500000 632 737
3/12/19 Baba Arts Limited 7518300.00 5 33832350 4 4
2/28/19 Bosch Limited - 1027100.00 21000 21569100000 18092 17714
2/28/19 PBM Polytex Limited 1375000.00 80 110000000 81 79
2/28/19 Tech Mahindra Limited 20285000.00 950 19270750000 811 833
Dhanuka Agritech
2/21/19 Limited - 1500000.00 550 825000000 436 390
2/11/19 Oil India Limited 50498717.00 215 10857224155 171 185

Indian Energy
2/6/19 Exchange Limited 3729729.00 185 689999865 53 55
2/5/19 Shanthi Gears Limited 5000000.00 140 700000000 127 133
2/4/19 HEG Limited 1363636.00 5500 7499998000 3661 2268
R Systems International
1/22/19 Limited 3690000.00 65 239850000 52 52
1/17/19 Just Dial Limited – 2750000.00 800 2200000000 496 658
1/15/19 NMDC Limited 102040815.00 98 9999999870 98 118
Tata Investment
1/3/19 Corporation Limited 4500000.00 1000 4500000000 880 854
12/29/18 Mphasis Limited - . 7320555.00 1350 9882749250 1003 1049

Oil and Natural Gas
12/27/18 Corporation Limited 252955974.00 159 40219999866 146 170
Cochin Shipyard
12/24/18 Limited - 4395610.00 455 2000002550 382 386
12/21/18 NHPC Limited 21428571.00 28 599999988 26 25
Techno Electric and
Engineering Company
12/21/18 Limited 2682400.00 410 1099784000 262 268
Triveni Turbine
12/21/18 Limited 6666666.00 150 999999900 118 106
Indian Oil Corporation
12/19/18 Limited 297651006.00 149 44349999894 92 103
National Aluminium
Company Limited
12/10/18 (NALCO) - 67311386.00 75 5048353950 65 65
Redington (India)
12/10/18 Limited 11120000.00 125 1390000000 45 49
12/7/18 S K F India Limited 1900000.00 2100 3990000000 1875 2044
Bharat Heavy
12/6/18 Electricals Limited 189336645.00 86 16282951470 71 73

List of share buyback (Open market offer) during the year 2018 to 2022
Price Price
Buyback Capital
Date Name Equity (qty) Before After
price bought back
Buyback Buyback
1/23/2023 KDDL Limited 175000 1200 210000000 1090 1177

VLS Finance
1/13/2023 Limited 3500000 200 700000000 160 184
Indian Energy
1/3/2023 Exchange Limited 4900000 200 980000000 138 144
One 97
Communications
12/15/2022 Limited 10493827 810 8500000000 524 672
Bajaj Consumer
12/14/2022 Care Limited 3370417 240 808900000 175 165
12/6/2022 Infosys Limited 50270270 1850 93000000000 1581 1524
Jenburkt
Pharmaceuticals
12/5/2022 Limited 165242 702 116000000 590 652
Windlas Biotech
11/11/2022 Limited 769231 325 250000000 237 263
Kaveri Seed
11/1/2022 Company Limited 1795000 700 1256500000 467 538
Mindteck (India)
8/13/2022 Limited 761111 180 137000000 124 142
8/10/2022 TCI Express Limited 365854 2050 750000000 1653 1941
Techno Electric &
Engineering
7/13/2022 Company Limited 4000000 325 1300000000 286 290
Marksans Pharma
7/12/2022 Limited 10000000 60 600000000 43 53
Route Mobile
7/4/2022 Limited 705882 1700 1200000000 1189 1485
6/30/2022 Bajaj Auto Limited 5434783 4600 25000000000 3648 4055
Cigniti Technologies
5/20/2022 Limited 76000000 500 38000000000 416 501
SMC Global
5/11/2022 Securities Limited 6521739 115 750000000 81 90
4/4/2022 UPL Limited 12571429 875 11000000000 782 822
Pennar Industries
3/14/2022 Limited 8000000 50 400000000 35 40
2/8/2022 Emami Limited 2945455 550 1620000000 472 495
Balrampur Chini
8/11/2021 Mills Limited 5250000 410 2152500000 348 392
Tanla Platforms
7/26/2021 Limited 515873 1260 650000000 935 1018
6/23/2021 Infosys Limited 52571429 1750 92000000000 1471 1619

Navneet Education
6/1/2021 Ltd. 5000000 100 500000000 79 98
Insecticides (India)
4/6/2021 Limited 1043478 575 600000000 311 509
Jagran Prakashan
3/5/2021 Limited 19666667 60 1180000000 49 63
Nava Bharat
3/1/2021 Ventures Ltd. 15000000 100 1500000000 60 84
The Anup
2/12/2021 Engineering Limited 312500 800 250000000 615 797
VRL Logistics
2/9/2021 Limited 2000000 300 600000000 204 264
2/3/2021 Atul Limited 68966 7250 500000000 6314 8932
Freshtrop Fruits
2/2/2021 Limited 750000 90 67500000 73 102
IIFL Securities
12/24/2020 Limited 16666667 54 900000000 43 56
11/26/2020 Sreeleathers Limited 2000000 160 320000000 139 211
Hindustan
Petroleum
11/12/2020 Corporation Limited 100000000 250 25000000000 187 253
Rane Brake Lining
10/19/2020 Ltd. 266667 825 220000000 578 773
Motilal Oswal
Financial Services
10/14/2020 Limited 2307692 650 1500000000 617 832
Fineotex Chemical
7/30/2020 Limited 1100000 40 44000000 30 43
eClerx Services
7/24/2020 Limited 1990909 550 1095000000 315 524
Kalpataru Power
Transmission
6/1/2020 Limited 7272727 275 2000000000 189 320
5/5/2020 JK Paper Limited 7692308 130 1000000000 94 105
OnMobile Global
4/15/2020 Limited 19321429 28 541000000 18 37
Polyplex
4/13/2020 Corporation Limited 1154000 475 548150000 300 769
4/7/2020 Delta Corp Limited 12500000 100 1250000000 58 119
STERLITE
TECHNOLOGIES
3/27/2020 LIMITED 9666667 150 1450000000 66 158
DALMIA BHARAT
3/26/2020 LIMITED 7142857 700 5000000000 434 760
RAMKRISHNA
FORGINGS
3/26/2020 LIMITED 1600000 250 400000000 40 116

Sun Pharmaceutical
3/26/2020 Industries 40000000 425 17000000000 365 530
3/24/2020 Emami Limited 6399810 300 1919943000 204 360
GOLDIAM
INTERNATIONAL
2/17/2020 LIMITED 773073 160 123691680 29 70
1/29/2020 GHCL Limited 2400000 250 600000000 190 138
Dishman Carbogen
1/22/2020 Amcis Limited 4800000 150 720000000 67 201
JAGRAN
PRAKASHAN
12/16/2019 LIMITED 13500000 75 1012500000 48 40
PENNAR
INDUSTRIES
11/15/2019 LIMITED 8888889 45 400000000 27 18
VAIBHAV
8/7/2019 GLOBAL LIMITED 720000 1000 720000000 166 400
Nava Bharat
6/13/2019 Ventures Limited 1562500 160 250000000 92 89
Action Construction
5/23/2019 Equipment Limited 2740000 125 342500000 92 75
Aurionpro Solutions
4/1/2019 Limited 1081081 185 200000000 127 109
Orbit Exports
3/27/2019 Limited 769231 130 100000000 92 119
3/20/2019 Infosys Limited 103250000 800 82600000000 710 792
2/7/2019 Cyient Limited 2857143 700 2000000000 600 686
Persistent Systems
2/5/2019 Limited 3000000 750 2250000000 547 685
Selan Exploration
1/3/2019 Technology Ltd. 833333 300 250000000 167 146
Goldiam
12/14/2018 International Ltd 1980000 90 178200000 14 25
Oriental Cabon &
11/15/2018 Chemicals Ltd 304348 1150 350000000 955 1152
Natco Pharma
11/14/2018 Limited 2500000 1000 2500000000 702 588
Lakshmi Machine
10/26/2018 Works Limited 266667 6000 1600000000 5882 6275
TD Power Systems
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A Study On Impact of Share Repurchase (Buyback) On Stock Return

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“A Study on Impact of Share Repurchase (Buyback) on Stock Return”

Submitted towards the partial fulfillment of the requirement of

Subject: CP-403 & 404 project study

Under the Guidance of

G. H. Bhakta Management Academy,

Prof. (DR). Janki Mistry

Professor & Head

1.1. An Introduction to the Indian stock market:

Department of Business & Industrial Management 1

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1.1.2. The NSE and BSE

1.2. Emerging scenario of share buyback in the Indian corporate

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1.3. Meaning: Relevant Law

“A Procedure which enables a company to go back to the holder of its shares/specified

SECTION 77A OF THE COMPANIES ACT, 1956 (SECTION 68 OF THE COMPANIES

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SECTION 77AA OF THE COMPANIES ACT, 1956 (SECTION 69 OF THE COMPANIES

SECTION 77B OF THE COMPANIES ACT, 1956 (SECTION 70 OF THE COMPANIES

1.4. Share Buy-Back: An Overview

1.4.1. Objective of Buy-Back

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1.5. Share Buyback: Positive Aspects

➢ The market generally interprets share buy-backs as positive signal.

1.6. Share Buy-Back Negative Aspects

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1.7. Which Companies Should Consider a Share Buy-Back?

1.8. SEBI Regulations, 1998 For Buy-Back Of Securities Latest Amendments

LAD-NRO/GN/2011-12/36/3187 - In exercise of powers conferred by sub-section (1) of section

Amendments to SEBI (Buy Back of Securities) Regulations, 1998 governing buy-back

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1.9. Buyback Through Tender Offer

1) Firstly, it is expedient to obtain approval of shareholders for buyback by a special

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than 30 days after the ‘specified date’.

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1.10. Buyback From Open Market Through Stock Exchange

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1.11. Buyback From Open Market Through Book-Building

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3.1. Definition Of Research

3.2. Research Problem Statement

3.3. Objectives of Study

3.4. Research Design

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3.5. Sampling Plan

3.5.2. Sample Size

3.5.3. Sampling Method

3.5.4. Sampling Area

3.6. Type of Data

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3.6.1. Secondary data

3.7. Sources of Data