Eligibility for Buyback
To be able to participate in the buyback process, the investor must have held shares of the company prior to the record date announced by the company in the buyback announcement. must be held in shares demat Form.
Tender of Shares for Buyback
The last date for tendering of shares for buyback has been disclosed by the company in the notice. Shareholders must submit their tender request by this date. This can be done by filling out the physical buyback form and mentioning the number of shares to be tendered for the buyback and the price for the buyback. The minimum number of shares that can be tendered is stated in the form. Online tendering of shares can be done using online broking platform. The number of shares tendered for buyback is blocked for any further transactions.
Approval for Buyback
Once the tenders are validated, the company will proportionately approve the buyback requests of the shareholders. The shares which are not approved for buyback will be unblocked in the demat account of the shareholder. The consideration for the shares bought back by the company shall be credited to the registered bank account of the shareholder.
things to note
- To be able to hold the shares in demat form on the record date, the shares have to be purchased at least 2 days prior to the record date.
- The retail category of investors (investment value of less than Rs 2 lakh) has 15% reservation in the total buyback offer.
(Content on this page is courtesy of Center for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Aarti Bhargava and Labh Mehta.)