Trend of Share Buybacks in the Indian Corporate Sector

( Vol-11,Issue-4,July - August 2025 )

Author(s): Mahak Makkar, Deepa Mangala

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Page No: 402-413
DOI: 10.22161/ijaems.114.36

Keywords:

Share Buybacks, Share Repurchases, Buyback Trends, Payout Policy, SEBI Regulations

Abstract:

The study examines the trends and structural characteristics of share buybacks in India using an extensive dataset of 584 buyback announcements from 2010–11 to 2024–25. First, it highlights the recent trends in the buyback activities, then it sheds light on the difference between tender offer buybacks and open market repurchases (OMRs) based on buyback characteristics. For this, a univariate analysis has been employed using both parametric (two-sample t-test) and non-parametric (Wilcoxon rank-sum test) methods. The findings show a noticeable slowdown in the buyback activities in recent years due to changes in taxation and buyback regulations. After phasing out of OMRs, tender offers become the predominant mode of execution. The results demonstrate that buybacks are mostly concentrated among promoter-controlled companies. Furthermore, tender offer buybacks are characterized by higher buyback size, amount, and promoter shareholding as compared to OMRs. Overall, the findings highlight that buyback behaviour is sensitive to regulatory changes, offering valuable insights for policymakers and investors in assessing the impact of buyback regulations on the firm’s buyback behaviour.

Received: 11 Jul 2025; Received in revised form: 08 Aug 2025; Accepted: 13 Aug 2025; Available online: 18Aug 2025

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