Abirami Financial Services Buyback 2023 vs Sportking India Buyback 2023

The proposed buy-back is being undertaken, inter-alia for the following reasons:

1. The buy-back will help the company to return surplus cash to its shareholders holding equity shares broadly in the proportion of their shareholding, thereby, enhancing the overall return to the shareholders,
2. The buy-back may help in improving return on equity due to a reduction in the equity base, thereby leading to a long-term increase in shareholders' value, and
3. The buy-back gives an option to the shareholders holding equity shares of the company, to either choose to participate and get cash-in-lieu of equity shares or choose to not participate and enjoy a resultant increase in their percentage shareholding.

The Buyback offers the following advantages:

a) The Buyback will help the Company to distribute surplus cash to its shareholders in proportion to their shareholding. 

b) The Buyback may help in improving financial ratios such as Earnings per share, Return on equity, by reducing the equity base of the Company. It will also lead to long term increase in shareholder's value.