Benefits of Share Buy Back

Following any one reason may apply,
a) To arrest/stop the fall in stock price.
b) In some situation company may want to bring down the public holding
and increase promoters holding.
c) If the company sees there is no better opportunity to deploy its cash
reserves then it may decide to buy back its shares.
d) The buy back may improve companies return ratios

1. Buy back at good premium, may increase the stock price in share
market.
2. As buy back of shares reduces outstanding shares, the EPS (EPS is
calculated by dividing net profit by outstanding shares) may look good.
The ROA (Return on Asset) and ROE (Return on Equity) may improve
by fall in outstanding shares and assets (in this scenario, excess cash).