What is Share Buyback?
What is Stock Buy Back?
What is share Buyback?
When a company repurchases its own share from the existing shareholder is called Buyback of shares.
The efforts by boards of directors to increase shareholder value often include buying back company stock.
A Buyback is also known as a “share buyback” or “stock repurchase.” Similar to a dividend, a Buyback is a way to return capital to shareholders.
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Tendor Offer :
- Buyback Price is fixed
- Number of shares to be bought back is fixed
- Time frame Upto one month
Open Market Offer :
- Maximum price of the buyback back is fixed
- Number of share to be bought back is fixed
- Time frame can be 3 months or more
How to participate in Buyback – Tender Offer
Letter of offer –
Company sends letter of offer via email on registered email ids or via physical post.
Through registered broker –
Eligible shareholders who want to tender his/her share in buyback, should send the duly filled tender form to his/her broker.
For an Example:
TCS announced Buyback 18 Aug, 2018
Buy Back Offer Deal
|Buyback Type:||Tender Offer|
|Buyback Record Date:||Aug 18 2018|
|Buyback Opening Date:||Sep 06 2018|
|Buyback Closing Date:||Sep 21 2018|
|Buyback Offer Amount:||₹ 16,000 Cr|
|Date of Board Meeting approving the proposal:||Jun 12 2018|
|Date of Public Announcement:||Jun 12 2018|
|Buyback Offer Size:||1.99%|
|Buyback Number of Shares:||76,190,476|
|Buyback Price:||₹ 2100 Per Equity Share|