Buy back of shares by a unlisted public company
This query is : Resolved
Ankit Tantia
(Querist)
13 January 2012
How is the valuation of shares done by a unlisted public company under the buy back scheme? In other words at which price the company should buy back its shares to be legally compliant ?
Please suggest me if there is any rule, circular or any other material on the pricing of share buy back by a unlisted public company>
Thanks in advance
Waiting for a quick response
Please suggest me if there is any rule, circular or any other material on the pricing of share buy back by a unlisted public company>
Thanks in advance
Waiting for a quick response
Jagruti (CS)
(Expert)
17 January 2012
If in your case Foreign investor are involved than you have to get pricing done as per Discounted cash Flow. Otherwise it can be arrived at considering the PE ratio, net worth, EPS and other factors. However the amount of Buyback shall be within the limit as stated in Sec77(A)
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