1. Tender Offer Buyback

This is the most common and transparent route.

• The company announces a fixed buyback price (usually at a premium of 5–30% over the prevailing market price).
• Eligible shareholders (as on the record date) can tender their shares through their broker during a short window (usually 10 working days).
• If the offer is oversubscribed, shares are accepted on a proportionate basis.
• Retail investors get a special advantage: 15% of the buyback size is reserved for shareholders whose holding value is ₹2 lakh or less on the record date. This usually results in a higher acceptance ratio for retail investors.
• Promoters are allowed to participate.
• Accepted shares are extinguished, and payment is credited directly to the shareholder’s bank account.