Last week, Bharat Heavy Electricals (BHEL) announced a buyback of its 189.3 million equity shares (nearly 5.16 per cent of the paid up equity share capital) at Rs 86 apiece, amounting to Rs 16.28 billion. The buyback price is at around 28 per cent premium to the current market price of Rs 67 on the Bombay Stock Exchange (BSE).
Analysts believe investors should subscribe for the buyback offer, as the long-term outlook of the business remains a concern. Given the working capital stress and the attractive buyback price, they suggest investors use the opportunity to tender their shares.
“The buyback