Buyback Offers 2026

A share buyback (or share repurchase) is when a company buys back its own shares from existing shareholders at a premium to the current market price. Companies initiate buybacks to return excess cash to shareholders, signal confidence in their business outlook, or improve earnings per share by reducing the total share count.

In India, companies can execute buybacks through two methods: (1) Tender Offer — shareholders tender their shares within a specified acceptance window at a fixed buyback price; (2) Open Market — company buys shares from the secondary market over a period. Most large corporate buybacks in India use the tender offer method.

For investors, buybacks offer an opportunity to sell shares at a guaranteed premium above market price. Tax treatment differs from dividends — the tax treatment depends on whether you hold shares as capital assets (capital gains tax applies) or as business income.