Current Buyback

How a tender-offer buyback works

The company fixes a buyback price (usually above the market price) and a record date. If you hold the shares at the end of the record date you can offer them through your broker while the tender window is open. Small shareholders (holding shares worth up to ₹2 lakh on the record date) have a reserved quota and their own entitlement ratio, so a larger part of their shares is often accepted. Shares that are not accepted come back to your demat account. In an open-market buyback the company simply buys on the exchange over a period, up to a maximum price.

Information only — not a recommendation. Check the company's letter of offer and your tax position.