What does Buyback mean?
When Company purchase its own shares from the market from shareholders to increase the stake of remaining shareholder is called a buyback.
It usually done in two ways:
- Tender Route Offer :- ‘Tender offer’ means an offer by a company to buy-back its own shares through a letter of offer from the shareholders of the company.
- Open Market Route :-‘Open Offer’ means company directly buyback the shares through exchange (BSE or NSE) from its shareholders.
The link below provide the buyback analysis of Just dial and Thomas Cook.