Buy back of shares by a unlisted public company

This query is : Resolved 

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


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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