The 2013-14 fiscal saw a total of 31 buybacks being concluded with a total acquired amount of Rs 4,425 crore against a total offered amount of Rs 5,704 crore, according to Prime Database.

Pranav Haldea, Managing Director of Prime Database, said that while 24 of these buybacks were through the stock exchange route, the balance seven were through the tender route. The largest buyback completed was by NHPC for Rs 2,368 crore.

Buyback

Buyback of shares means repurchase of outstanding shares using surplus cash in the balance sheet of a company.

It results into a reduction in share capital to the extent of shares bought back. The move also leads to an increase in promoter holding and improvement in earnings per share for the future period.

Shareholders can participate either through the tender offer route or by selling shares in the open market as may be decided by the company.

Prime Database further pointed that in terms of buyback offers which opened in this period, there were 32 such offers offering to buy shares worth Rs 11,380 crore. About 23 of these offers have closed till now.

The offer amount in these 23 offers was Rs 5,274 crore and the acquired amount was Rs 4,267 crore. Nine offers are still open, the largest of which is the Cairn India buyback offer for Rs 5,725 crore.

In addition to buybacks, Prime Database also stated that 15 delisting offers worth Rs 1,211 crore were made in FY14, of which 12 offers worth Rs 1,170 crore were successful, while for three the status was still unknown.

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