Submitted to : Sonia Garg

Submitted by : Sumanyu kapoor (401508032)

Abhay Thakur (401508004)
Kunal Kishore (401503014)
Harshita Jain
Abhishek Garg (401504001)
 What is buyback
• When a company repurchases its own share from the
existing shareholders is called buy back of shares.
• It means when a company buyback its share from the
market place. The company invest in itself.
• Company offer its shareholders a buyback price which
is higher to the current market price of the share.
 Ways of buyback
 Tender offer
Shareholders are offered by the company to submit a portion or
all of their shares within a time period. The tender offer will contain
• The number of shares the company is looking to repurchase
• the price range they are willing to pay .
When investors accept the offer, they state the number of shares
they want to tender and the price they are willing to accept.

 Open Market
The second alternative a company has is to buy shares on the
open market, just like an individual investor would, at the market
price. It is important to note, however, that when a company
announces a buyback it is usually perceived by the market as a
positive thing, which often causes the share price increase.
• Stock buybacks help companies consolidate
ownership.
• When there’s market pessimism, companies use
buybacks to increase equity value.
• Buybacks can make companies look more financially
healthy, attracting more investors.
• If company feels their shares are undervalued, then
company can repurchase its shares at this reduced
price and then re-issue them once the market has
corrected.
• Buyback is an efficient way of distributing surplus funds
to the shareholders and it also creates trust among the
share holders.
 Tech Mahindra
• Tech Mahindra used fixed price tender offer to buyback
shares

Market price = 830(20 feb 12:35 pm)

Buyback price= 950 feb
Total shares buyback = 2:.16% of total paid up equity
capital of company

At present = 673
Buy back price = 3800
Market price = 3653