TTK Prestige board to consider share buyback on Aug 2, stock rises 4%

TTK Prestige shares have gained around 18 percent over one year.

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26 Aug, 2025 12:21

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TTK Prestige announced the firm's management will consider a buyback of equity shares during the upcoming board meeting on August 2, 2024.

This will be the firm's second consideration of a buyback in seven years. The last share buyback was conducted in July 2017.

Following the announcement, TTK Prestige shares soared around four percent in trade on July 30. At 12.50 pm, shares of the firm were quoting at Rs 936.05 apiece on the NSE, higher by 3.4 percent.

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Buyback refers to a mechanism wherein the company buys back its own shares from existing shareholders. The shares bought back are then extinguished, which, in turn, improves the key financial ratios including earnings per share (EPS).

More importantly, buybacks are looked upon as a confidence-boosting measure by the management and the promoters. The buyback price is often considered the fair price for the shares, and the market price typically moves towards the buyback offer price.

Share buybacks have been in focus following the Union Budget 2024, as investors participating in buybacks may have to shell out higher tax out of pocket while receiving the proceeds as the central government proposes to tweak the buyback tax rules.

Currently, buybacks are taxed in the hands of the company at 20 percent rate and investors were not required to pay any additional tax for such income. But going forward, the company will not deduct any taxes and all the income received by the investors will be treated as dividend and taxed as per the income tax slab of the investor.

TTK Prestige shares have gained around 18 percent over one year, as compared to a 26 percent rise in the Nifty 50 index.

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