Tender offer vs Open Market Buyback

What Is Tender offer Buyback?

The company approaches shareholders who wish to sell their shares can submit them to the company for sale.
The price is fixed by the company and is generally over the CMP.

For Example:- TCS initiated a tender buyback at Rs 4500 in March 2022.

What Is Open Market Buyback ?

In this method, the company buys back shares from the open market and not the shareholders.

The buyback is carried out over a long period because usually a huge number of shares are bought.

For Example:- Infosys announced an open market buyback at a price not exceeding Rs 1850 yesterday.

Tender offer buyback helps the shareholders monetize the shares immediately than an open market buyback!

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