In a share buyback, make a tactical bet if price gap is attractive

In a buyback, purchase the stock early from the market or else the price gap could close

Share buybacks have become the flavour of the season, with companies such as TCS, Wipro, and Majesco announcing them. A key question to answer is whether retail investors, who generally have long-term financial goals, should participate. 

Experts seem to be divided. Some think you may. Feroze Azeez, deputy chief executive officer, Anand Rathi Private Wealth, says: “While a retail investor should largely follow a personal finance plan that is strategic in nature, he can sometimes undertake a few tactical transactions that propel him towards his objective. Buyback is one of them.” 

In a buyback, a company buys its shares at a price