Understanding the Extinguishment Date in Share Buybacks

What does extinguishment date mean in share Buybacks?

The extinguishment date refers to the timeline when a company, after buying back its own shares or other securities, must destroy them. This process is typically completed within a week post the buyback's conclusion. The aim is to reduce the company's share capital and deter potential misuse of the repurchased shares. Subsequently, the company is legally bound to inform the Registrar of Companies about the buyback within a month after the shares are extinguished.

For example, TCS Limited announced a buyback offer worth ₹18,000 crore at ₹4,500 per share through a tender offer route on 12th January 2022. The buyback's record date was set for 23 February 2022, while the extinguishment date was established for 8th April 2022. TCS Limited then reported the buyback to the Registrar of Companies on 15 April 2022.

    • Related Articles

    • Is online application possible for share Buyback on FYERS?

      Absolutely! On FYERS, you can seamlessly apply online for a share buyback, given you possess the relevant shares in your Demat account by the crucial record date. The entire online tendering procedure is streamlined for your convenience. For a ...

    • What does the Peer Comparison in FYERS mean for investors?

      What does the Peer Comparison in FYERS mean for investors? When evaluating a stock in FYERS, investors can view a “Peer Comparison” table under the Fundamentals tab. This table provides side-by-side financial metrics of related companies operating in ...

    • How Do I Convert My Physical Share Certificates Into Demat Form With FYERS?

      At FYERS, we help you convert your physical share certificates into demat (electronic) form so you can securely manage, transfer, and trade your holdings. This guide walks you through each section of the Dematerialisation Request Form (DRF) and the ...

    • Can I participate in NSE Buybacks via FYERS?

      Absolutely! At FYERS, we offer the facility to apply for buybacks on both NSE and BSE. To familiarise yourself with the process of applying for Buybacks, please refer to this article.

    • Why can't I apply for all Buybacks on FYERS?

      At FYERS, we enable our users to apply for Tender Offer Buybacks directly through the 'My Account' portal. To gain clarity on the application process, refer to this article. However, Open Market Buybacks cannot be applied for via FYERS. Tender Offer ...