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As cash conservation becomes priority, India Inc to go slow on share buybacks

India city Mumbai covid-19 outbreak economy
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Mumbai: India Inc, which rushed to announce share buybacks as stocks initially fell due to covid-19, is now expected to go slow with an eye on conserving cash at a time when business continues to be impacted by the nationwide lockdown.

Mint reported on 19 March that several cash rich companies and their promoters were planning to announce share buybacks as a way to arrest falling stock prices by signalling to the markets that they feel their stocks are undervalued.

Buybacks offer a premium over the prevailing market price thus making them attractive for existing shareholders to sell their shares in such an offering.

Several companies such as Sun Pharmaceuticals Ltd, Dalmia Bharat Cement Ltd, Motilal Oswal Financial Services Ltd, Emami Ltd

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COVID-19
United States
United States
Cases: 46 252 513
Deaths: 750 423
Recovered: 0
India
India
Cases: 34 321 025
Deaths: 459 652
Recovered: 0
Brazil
Brazil
Cases: 21 835 785
Deaths: 608 235
Recovered: 0
United Kingdom
United Kingdom
Cases: 9 215 683
Deaths: 141 607
Recovered: 0
Russia
Russia
Cases: 8 494 589
Deaths: 237 619
Recovered: 0
Detail statistic
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