Why not. When your business has no purpose with the cash that is being generated, the best thing for the management to do is to return it to the shareholders. I believe the current buy back is planned to return the money generated from CDSL stake sale to shareholders in a tax efficient manner. I believe management is doing the right capital allocation via this proposed buy back.
Bonus is issued to increase the free float and create more liquidity for the shares that is available – buy back and bonus issues have totally different purposes.
AJ
Disclaimer: Remain invested. Opinions are biased.
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