Three former senior employees of Infosys asked for an Rs 11,200-crore share buyback.
Buybacks do not necessarily help sustain the share prices of companies for a very long period, according to a study by FE, reports Ankit Doshi in Mumbai. Three former senior employees of Infosys asked for an R11,200-crore share buyback. In fact, companies like DLF have lost value following the buyback, possibly because of poor operating performance. There are some like like Reliance Industries that lost value in the month after the buyback ended RILs was the largest ever buyback by an Indian company announced for a value of Rs 10,440 crore and it spent close to
R3,400 crore. Again, while the Reliance Infrastructure stock jumped a good 30% on the announcement, it subsequently gave up a lot of this value. The story was similar for Zee Entertainment.
Editorial: Buyback is no solution