Abstract
Buyback of shares is the company’s strategic move to decrease the outstanding shares in the market by buying its own shares from their own shareholders. This study is an effort to analyse the effect of share buyback announcement by manufacturing companies in India, considering 182 events from both the tender offer and open market method from financial year 2000-01 to 2018-19. The event study methodology from the market model has been considered to attain the Abnormal returns (AR). Stock return and market return both are calculated from the daily market data of BSE. BSE S&P SENSEX is considered as benchmark index for the calculation of market return. The market reaction to buyback offers are positive in India according to most of the previous studies, the same is observed even in this study on select manufacturing companies.
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