Abirami Financial Services Buyback 2023 vs Welspun Enterprises Buyback

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 Buy-back is being undertaken for the following reasons:

1. The Buy-back will help the Company to return surplus cash to its members;
2. The Buy-back would involve the allocation of a higher number of shares as per their entitlement or 15% of the number of shares to be bought back, reserved for the small shareholders. The Company believes that this reservation for small shareholders would benefit a large number of public shareholders, who would get classified as "small shareholders";
3. The Buy-back may help in improving return on equity;
4. The Buy-back gives an option to the members holding equity shares of the Company, who can choose to participate and get cash in lieu of equity shares to be accepted under the Buyback offer or they may choose not to participate and enjoy a resultant increase in their percentage shareholding;
5. Optimizes the capital structure and enhances investor confidence.