India Inc. braces for buyback rush ahead of changes to tax rules
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Companies in India are gearing up for increase in share buybacks in the coming weeks before new tax rules on repurchases take effect on Oct. 1. At least 11 firms, including Indus Towers Ltd., have or are set to approve share buybacks shortly after the new regime was proposed in the budget on July 23. This is a jump from the average of about four transactions per month in 2023, data from primeinfobase.com show. “Some companies are using the short window available to come forward,” said Siddarth Bhamre, head of research at Asit C. Mehta Investment Interrmediates Ltd. “The ones with low debt and cash in hand to pay investors might be tempted to do so.” Bloomberg Indus Towers Ltd., which provides shared infrastructure to mobile-phone carriers, last week announced a buyback totaling 26.4 billion rupees ($315 million). TTK Prestige Ltd., a maker of cooking appliances, plans to repurchase shares worth 2 billion rupees. Dhanuka Agritech Ltd. appr...