What is Buyback of shares through tender offer ?

What is Buyback of shares through tender offer ?

In a tender offer, the Company buys back its shares from the existing shareholders at a fixed price on a proportionate basis within a given time frame. The Company issues a letter of Offer and Tender Form to all eligible shareholders on the company records as on the buyback record date. All the eligible shareholders who hold the shares either in physical form or Demat can participate in the buyback offer.

 

-All eligible shareholders as on a record date can participate in the tender offer.

-The buyback is done on a proportionate basis as per the buyback ratio. The additional shares tendered over and above the prescribed buyback ratio get accepted if there are any unaccepted shares.

-A tender offer is a fixed price buyback offer.


    • Related Articles

    • How to apply for Buyback ?

      Please find below the process to place your bid for buyback of shares. Process 1 The customers who are eligible for buyback will get an email from “[email protected]” on their registered email ID in our records. This email will contain a ...

    • What is Share Buyback ?

      Share Buyback is when Companies buy back their own shares from the existing shareholders at an attractive rate. A share buyback is done with the intention to reduce the shareholder’s stake and lower the outstanding shares in the Company.

    • How will the funds payout happen post Buyback ?

      Funds pay-out for Buyback Issue will be directly credited by the Company's Registrar in the registered Bank Account of the customer which is linked with the Demat Account and not through the Broker

    • When should I expect credit of IPO Shares in my Demat Account ?

      Shares are transferred to your demat account just before the day of listing of the IPO shares at the stock exchanges.

    • What are the most common types of corporate actions ?

      - Bonus Issue Bonus shares are additional shares given to the shareholders without any extra cost based on their existing shares. When bonus shares are issued, the number of shares increases but the value of the total shares remains unchanged. - ...