BHU Management Review | Volume 11, Issue 1, January - June, 2023 97 Market Reaction of Share Buyback Programs: A Study of Select Indian IT Firms Yogita Dwivedi 1 1 Dr. Yogita Dwivedi, Assistant Professor, Jaypee Business School, JIIT, NOIDA India. Email: yogita. d20@gmail.com ABSTRACT is study investigates the market reaction to buyback in India. For this purpose, a sample of 13 buyback offers from 04 Indian IT Companies was selected from 2016 to 2022. A standard event study methodology analyses the data to reach logical findings and conclusions. Using event research techniques to calculate the AAR and CAAR, the paper examines the company and year-wise performance of 13 buyback offers made by Indian IT companies between 2016 and 2022.e findings show inconsistent average abnormal returns for all sample IT enterprises. e study found that one of the main reasons for buying back shares is to distribute excess cash, not to signal under valuation. e little announcement effect of buyback on select IT companies concludes that the frequency of buyback announcement(s) only sometimes positively impacts share price returns.e results of the event study methodology have found no significant impact of repurchase announcements on shareholders’ wealth.e study concludes that the Indian stock market maintains efficiency; repurchase announcement(s) could swiſtly absorb share(s) prices. e study targeted the top four Indian IT companies that have repeated share repurchase programs for the last six years. AAR’s mixed result showsno significant impact on investors’ minds aſter the announcement.e study suggests that investors are willing to invest in growth- oriented companies rather than withdraw investment from them.Since our research is limited to IT, the result may differ for other sectors. us a comprehensive analysis of different sectors is required for comparison. Keywords: Buyback of shares, Event study, Indian IT Companies, Share price performance, shareholders’ wealth. 1. INTRODUCTION In recent years, Indian corporations witnessed a restructuring revolution. Corporate restructuring is the management action that denotes significant reorientation of the company’s capital structure to alter the quality and quantity of future cash flows. Companies earn a considerable profit and use their income more profitably. Without optimal project or positive NPV opportunities, companies return some of their profit to shareholders instead of building a cash stockpile. Corporations use cash dividends and/ or buyback of shares as two primary pay-out methods of cash distribution to shareholders, which influence not only stock price return but also the company’s financial ratios. ere was a significant shiſt