What is a buyback of share?

Buyback or share repurchase is a strategic move where a company repurchases its shares from shareholders directly. This corporate action is initiated with the aim of acquiring shares generally at a price higher than the current market value. Presently companies are mandated to tender offer through exchange platform.

Tender Offer:

In a tender offer, the company extends an invitation to shareholders to sell their shares at a specific price and the proceeds for accepted shares is transferred directly to the shareholder's bank account which is registered in their demat account.