¥ AN EXIT TO WEALTH -7 ¥by: SPELSTER@ 16-03-11 - 09:24:52REAPING A RARE HARVEST
THE DISTINCTIVE FEATURES
BUYBACK
> DONE BY the company itself
> GENERALLY, the number of shares reduce after a buyback
> BUYBACK can be through open market operations or through the tender route
> BUYBACKs, are voluntary on the part of the company
> THERE is a maximum limit or ceiling up to which a company can raise its equity through BUYBACKs during a year
OPEN OFFER
> DONE BY promoters or any other third party other than the company
> OPEN OFFERs, don't result in change in the number of outstanding shares
> OPEN OFFERs are typically through the tender route only
> IN MOST instances, OPEN OFFRs are mandatory rather than voluntary
> THERE is minimum limit of 20% with no maximum limit in case of OPEN OFFERs
Ramkrishna Kashelkar
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