What is a Share Buyback?
What is a Share Buyback? |
A share buyback is a process where a company offers to purchase its own shares from existing shareholders at a predetermined price, usually at a premium to the prevailing market price. Eligible shareholders can tender their shares during the buyback window, and the company accepts shares based on the applicable entitlement and acceptance criteria. Example ABC Ltd. announces a buyback at ₹1,200 per share, while its market price is ₹1,050. Eligible shareholders can choose to offer their shares to the company at ₹1,200 during the buyback period. Key Fact A buyback can be one of the ways companies return surplus cash to shareholders. Understand Share Buyback Learn what a share buyback is, how companies repurchase their own shares, and how eligible shareholders can participate in the buyback process. Have a question? |