Trend of Share Buybacks in the Indian Corporate Sector

The study examines the trends and structural characteristics of share buybacks in India using an extensive dataset of 584 buyback announcements from 2010–11 to 2024–25. First, it highlights the recent trends in the buyback activities, then it sheds light on the difference between tender offer buybacks and open market repurchases (OMRs) based on buyback characteristics. For this, a univariate analysis has been employed using both parametric (two-sample t-test) and non-parametric (Wilcoxon rank-sum test) methods. The findings show a noticeable slowdown in the buyback activities in recent years due to changes in taxation and buyback regulations. After phasing out of OMRs, tender offers become the predominant mode of execution. The results demonstrate that buybacks are mostly concentrated among promoter-controlled companies. Furthermore, tender offer buybacks are characterized by higher buyback size, amount, and promoter shareholding as compared to OMRs. Overall, the findings highlight that buyback behaviour is sensitive to regulatory changes, offering valuable insights for policymakers and investors in assessing the impact of buyback regulations on the firm's buyback behaviour.