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.

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