Companies in India are preparing for a surge in share buybacks ahead of new tax rules on repurchases set to take effect on October 1. Since the budget proposal on July 23, at least 11 firms, including Indus Towers Ltd., have either approved or are planning to approve share buybacks. This marks an increase from the typical four transactions per month in 2023, according to data from primeinfobase.com.
"Some companies are taking advantage of the short window available," said Siddarth Bhamre, head of research at Asit C. Mehta Investment Intermediates Ltd. "Those with low debt and sufficient cash to pay investors might find this an attractive option."
Indus Towers Ltd., which provides shared infrastructure to mobile-phone carriers, recently announced a buyback worth 26.4 billion rupees ($315 million). TTK Prestige Ltd., a manufacturer of cooking appliances, plans to repurchase shares worth 2 billion rupees. Dhanuka Agritech Ltd. has approved a buyback of 1 billion rupees, and Cera Sanitaryware Ltd.’s board is set to meet on Monday to consider a similar action.
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