Abstract

This case study is about the dilemma faced by Manohar, a wheat farmer who wanted to hedge his price risk. Unable to lock the price using a traditional Forward contract, he is exploring the possibility of a Futures contract on a commodity stock exchange. The case study introduces Forwards and Futures while going deeper into exploring the trading process and other requirements of a Futures contract.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• To understand the concept of buyback of shares.
• To discuss the factors that need to be considered before going in for a buyback.
• To learn the implications of a share buyback both in the short term and the long term.
• To explore and evaluate company strategies for the effective use of cash.
• To understand the buyback developments in India.

Keywords

Share Buyback, Infosys, Software Industry, Cash Strategy, Shareholder wealth, Merger and Acquisition, Leadership Transition, Share price, Capital restructuring, Dividend, EPS, ROE, ROA, Section68(1),companies Act,2013