Impact of Buyback of Shares on Share Prices with Special Reference to NIIT Ltd.

Abstract

Buy Back of shares is a new phenomenon in India. Buy Back of shares means company repurchase their own shares. In simply words Buy Back means reissue of shares. The research paper focused on impact of Buy Back of shares on share prices. Buyback of shares is a part of corporate restructuring and emerging strategy for the Business. Buyback program the company distributes the excess cash flow among the shareholder by way of repurchasing its own shares, generally at premium .India shares buy back were introduced in 1999 has receive and attention of all major companies. Since then there has been a spate of announcement of share buy backs. Small investors in India also need to know whether they will benefit by will participating in the Buy -Back offer or they will be better off in the post buy back phase companies acquire their Own shares to improve earnings per share by reducing the number of shares.