The Board of directors intend to understand the benefits of the buyback of shares. You have been requested by the Board of directors to list out a few benefits of buyback of shares.

A few advantages of buyback of shares are as under: It is an alternate mode of reduction in capital without requiring approval of the court/NCLT. To improve the earnings per share. To improve return on capital, return on net worth and to enhance the long-term shareholders value. To provide an additional exit route to shareholders when shares are undervalued or thinly traded. To enhance consolidation of stake in the company. To prevent unwelcome takeover bids. To return surplus cash to shareholders. To achieve optimum capital structure. To support share price during periods of sluggish market condition. To serve the equity more efficiently.