buy back

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anurag upadhyay (Querist)
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14 February 2009 hi,sir i am anurag upadhyay.i want to know about buy back.how buy back inhance pe ratio and eps.and how it increases the promoter stake.i am waiting for reply. my email id is visionaryanurag@gmail.com thanks and take care

CA Paresh Kothari

CA Paresh Kothari (Expert)
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15 February 2009 Hi,

The buyback reduces the Equity Share Capital of the company.

It does not increase promoters stake.

The EPS will increase for the simple reason-- The numerator factor of "Number of Equity Share Outstanding" in EPS formulae get reduced.

I hope you are clear with this.

rgds,

CA Paresh Kothari
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