Stocks to watch out for buyback

The boards of HCL Technologies, Engineers India and Oil India will meet on Monday to consider buyback proposals. The share price of HCL Technologies trading flat at Rs 865.15. Engineers India is trading at 0.36 up at Rs 155.15 and Oil India also increased 0.18 per cent and is trading at Rs 336.4 on intra-day basis.

A buyback is known as a repurchase by a company of its outstanding shares that reduces the number of its shares on the open market.

There are numerous reasons for companies to buy back shares, such as to increase the value of existing shares by reducing it's supply or to eliminate menace by shareholders who might look to control stake.
 
The shareholders of the companies would be keenly observing the vital announcement of shares buy back decision and the prices of the issues.

At the same time, the mode of buyback - tender route on proportionate basis or open market purchase will also be eyed. For investors, the record date for buy back will be essential and watched out.