Impact of Shares Buyback

 A share buyback has various impacts on a company's financial and other aspects.

• Boost in Share Price
  The buyback generally has a positive impact on share prices. The buyback of shares will increase stock price. The buyback would shrink the supply of shares in the market on one side. On the other hand, with an increase in the EPS, people would prefer to buy the stock leading to a sudden demand for such securities. With higher demand and lesser supply, the prices of the shares get boosted.
  
  
• Increase in Earnings Per Share
  With the buyback of shares, the total number of outstanding shares in the market reduces. With earnings remaining the same and the number of Equity Shares reducing, the Earning Per Share ratio shows a significant improvement.
  
  
• Improvement of Financial Statements
  The buyback of stock will also have a positive impact on the financial statements reflecting an improved return on asset and return on Equity with a reduction in assets by way of reduced cash holding used to buy back the stock and a reduction in the number of Equity shares with the repurchase of shares.
  
  
• Increase in Shareholder Value
  With the reduction in the number of equity shares in the market, the percentage of ownership held by each shareholder increases leading to an increase in the shareholder value.