Essay About 1,00,000Mode Of Buyback And Time Period Of The Offer

Method of Buyback
Tender Offer MethodIllustration – 1Current Market Price                          :    Rs. 55 per shareNo. of shares announced to be Bought back by the company              :   1,00,000Mode of buyback                                 :   Tender offerBuyback price announced by the Company                                              :   Rs. 75 per share (ie at a premium of Rs. 20 per                                                                    Share over the prevailing market price)Total shares offered for buyback at the buyback priceDecision taken by the companyTotal number of shares accepted by the company for buyback1).  4,00,000a).  Extend the size of buyback and repurchase all the shares.ORb).  Purchase the shares pro rata, ie., 1,00,000 / 4,00,000 x  100  = 25%of each shareholders offering. 4,00,0001,00,0002).  50,000a).  Cancel the offerORb).  Buyback all the shares which are tendered, even if it is less than the number specified.ORc).  Extend the time period of the offer.NIL50,00050,000 + number subscribed for during the extended time period.