The shares buyback is a corporate event wherein the company offers to buy back the shares it had issued earlier to the market. There are two popular ways in which a company can buy back shares - 1. Open Markets and 2. Tender.
1. The term "tender offer" refers to a company's offer to repurchase its own shares. A tender offer has a fixed price and is open for a fixed time period.
2. The open market buyback window is longer and does not happen at a fixed price. Open market buyback offer is open for 6 months from the date of the opening of the Buy-back.
The buyback offer benefits the shareholders as it helps improve the shareholder value, increases the return on share capital, and fetches a premium price. To decide whether to stay invested or sell the shares in a buyback, one should examine the company's performance as well as other risk factors.
The below list will give you detailed information about the buybacks.
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