In a Tender Buyback, a company buys back shares from eligible shareholders at a fixed price within a specific time period.
In a Tender Buyback, the company invites eligible shareholders to offer, or “tender,” their shares for repurchase.
If you hold the eligible shares in your Demat account on the company’s record date, you can participate in the Buyback by submitting your request through FYERS Web during the active Buyback window.
Companies may generally conduct Buybacks through different methods, such as:
| Buyback type | Meaning |
|---|---|
| Tender Offer Buyback | Shares are repurchased directly from eligible shareholders, usually on a proportionate basis. |
| Open Market Buyback | Shares are bought back through the stock exchange or via bidding process. |
| Odd-lot Buyback | Shares are repurchased from shareholders holding smaller or non-standard quantities of shares. |
Currently, FYERS facilitates participation only in Tender Offer Buybacks through the platform.
| Scenario | Solution |
|---|---|
| What if I want to participate in an Open Market Buyback? | FYERS currently does not provide an application flow for Open Market Buybacks. The Buyback feature on FYERS supports only Tender Offer Buybacks. |
| What if the company announces a Buyback, but I bought the shares after the record date? | You may not be eligible to participate through the Tender Buyback because eligibility is based on holdings as of the company’s record date. |
| What if I tender more shares than my eligible quantity? | You can tender only up to the eligible quantity shown in the Buyback window. The final acceptance depends on the company’s Buyback terms and applicable regulations. |
| What if all my tendered shares are not accepted? | In Tender Buybacks, acceptance may be proportionate based on the number of shares offered by shareholders and the company’s Buyback size. Unaccepted shares remain in your Demat account. |