Buyback Analysis

How to deal with these Special Situation Events?

A Thread.🧵

1/n Before we start with our Buyback Calculation let’s understand some basic term to ease our understanding

2/n Buyback of shares is approved by two routes

1) Tender Route

2) Open Market Route

3/n
1.Tender Route
Tender Route is the most common way for the buyback. In the tender route, the current shareholders have to make an application for the buyback of shares and based on the demand, the company buy back the shares on the pro-rata and quota allocation basis.

4/n
2. Open Market Route

The open market is a simple and easy one. The company buyback the shares from the exchanges and complete the buyback process but due to such a heavy demand in the shares, the share price rises,