A buyback, also known as a repurchase, is the purchase of its own outstanding shares by a company leading to a reduction in the available free float shares. Companies buyback shares for a number of reasons such as return of excess cash to shareholders, increase the value of shares when they believe the market price is below its intrinsic value or at times to thwart any hostile takeover attempts by rival shareholders.

By reducing the number of shares outstanding in the market buybacks help increase the value for astute investors who believe in the long term prospects of the company. A buyback is often resorted to in lieu of dividends as it helps improve the balance sheet return metrics and creating space for future capital raising if required.

Infosys Ltd. - Buyback

Buyback announcement

In the month of August, 2017 Infosys announced its buyback of up to 11.3 crore equity shares at a price of Rs 1,150/- each aggregating to the buyback offer size of not more than Rs 13,000 crore. This buyback went ex-date on 31st October, 2017. The record date for determining the eligibility of equity shareholders and also ADRs held has been determined as 01st November, 2017 by the company. Know more...

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Buyback is a corporate action in which a company buys back its shares from the existing Shareholders usually at a price higher than market price.
Buyback can be of two types - tender offer & open market offer.

1. Tender offer - shareholders will have the option to submit (or tender) a portion or all of their shares within a certain time frame and at a premium to the current market price. This premium compensates investors for tendering their shares rather than holding on to them.

2. Market offer - companies buy back shares on the open market over an extended period of time.

In the both offers viz. Wipro and Infosys, respective companies are following the tender route.
Registered customers of SSL who have availed the facility of online trading & investment transactions and who are in the category of Resident Indians and HUF’s are allowed to bid/apply in individual category for the Buy-Back offers through SSL. This is for only those clients who have received the tender offer letter from company or RTA to participate.

1. Customer needs to log into his/her account from SBISMART web platform and select Buyback option available under trade menu

2. SBI Smart Mobile user needs to select Buyback option available under backoffice menu.

3. Customer can also place Buyback order through our trade and Call dealing desk number 1800-2099-345.
In case of buyback, this facility is not available.
While placing Buyback order, amount equivalent to 1% of total Buyback value (Quantity * Offer Price) is blocked toward statutory & brokerage charges. This 1% value would be deducted from client’s lien amount. If sufficient lien is not marked, the order will not get placed even if the customer has the sufficient ledger balance.
Funds pay-out for Buyback offer will be directly credited by the exchange in DP-linked bank account of the customer.
Contract note will be sent to the clients within 24hrs of the settlement date.