Understanding Share Buybacks on FYERS

What is a Buyback of shares?

A Buyback is a corporate action where a company repurchases its own shares from existing shareholders, usually at a price higher than the prevailing market price. Companies generally announce Buybacks to reduce the number of shares available in the market, return value to shareholders, improve financial ratios such as Earnings Per Share, and optimise their capital structure.

When a company buys back shares, the repurchased shares are either extinguished or held as treasury shares. This reduces the total outstanding shares of the company and may positively impact investor sentiment and key financial metrics.

Understanding Buybacks

To participate in a Buyback, you must hold the shares in your Demat account on the company’s specified record date.

If you are eligible, you can apply for the Buyback online through FYERS Web or FYERS App during the active Buyback window.

To learn how to participate in a Buyback through FYERS, refer to the article: How can I apply for a Buyback on FYERS?



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