A Momentum to the Tender Offer Method of Buyback in India – An Analytical Study

Abstract

There are a number of methods of stock buyback by a limited company. However, tender offer and open market repurchases are widely adopted and known methods in India. The present paper concentrates on tender offer. Purpose of the paper is to outline the existing literature exclusively on tender offer and to examine effect of revised guidelines in choosing the method for buyback. The data on number of tender offer repurchases made by the companies in India from 1998 to 2022 have been gathered to analyze and to interpret the effect of the revised guidelines to achieve the objective of the paper. The paper finds that there is a positive effect of the revised guidelines on the choice of the method. The paper concludes that the use of the tender offer method of buyback is increased over a period of time due to the guidelines revised from time to time by the regulatory body to curb the loopholes in the methods.