Understanding the Tender Offer in Corporate Actions

What is tender offer?

A 'Tender Offer' is an official proposal by a company to repurchase its own shares or other specific securities directly from the shareholders.

A company has multiple avenues to buy back its securities:
  1. From Shareholders through Tender Offer: Here, shares or other securities are repurchased from existing holders based on a proportionate basis.
  2. From Open Market: The company might opt to buy back:
    1. Through a book-building process.
    2. Via a stock exchange.
  3. From Odd-lot Holders: This pertains to shareholders holding a non-standard or smaller number of shares.

    • Related Articles

    • 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 ...

    • 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 ...

    • What Are Direct Mutual Funds, and How Does FYERS Offer Them?

      When investing in mutual funds via FYERS, you’ll notice that all offerings are under the Direct Plan variant. Direct mutual funds give investors access to the same schemes as regular plans, but at a lower cost because there are no distributor ...

    • What is the cut-off time to place a Buyback order?

      Buyback orders on FYERS can only be placed during the specific exchange-approved tendering window. These timings determine when your buyback request will be accepted. Any order submitted outside this window is automatically rejected. Buyback Order ...

    • Can I apply for an OFS through FYERS?

      The Offer for Sale (OFS) facility is currently unavailable on FYERS. As a result, you will not be able to apply for or invest in an OFS through FYERS at this time. We apologise for the inconvenience caused. The facility will remain unavailable until ...