Buyback offers: 50% of cos witness sharp drop in value

 The share buyback scheme offered by Indian corporate houses would be more effective if it is shorter, time-bound programme, according to Mr Kishor Ostwal, Managing Director of CNI Research. In a study, CNI Research analysed 22 companies, which had come up with buyback offers during 2008-2009 and found that the trend was mixed and the share price depreciated by more than 50 per cent in the case of nearly half of the companies. Mr Ostwal told Business Line that buybacks were gaining in popularity amongst multinational companies with increasing number of them opting for this route.