What is shares buyback?
Shares buyback is the process in which the company repurchases the stock of shares previously issued by the company.
How can investors apply for shares buyback?
Taking an example of ICICI Direct:
1. Log into ICICI Direct DMAT account
2. Go to IPO section, and choose the Company to apply buyback
3. Enter the Quantity of shares (Investor can apply only at the offered price)
Who can apply for shares buyback?
The Buyback is open to all shareholders holding Equity Shares in physical form (“Physical Shares”), beneficial owners holding Equity Shares in dematerialised form (“Demat Shares”).
For Buyback only eligible customers holding shares as on Record date are allowed to offer shares to the extent of shares held by them as on record date
Any limitation for promoters for shares buyback?
1. In accordance with the provisions of Regulation 15(b) of the Buy-back Regulations, the Promoter and Promoter Group of the Company, are not permitted to participate in the Buyback.
2. However, in accordance with Regulation 19(1)(e) of the Buy-back Regulations, the Promoter and Promoter Group shall not deal in the Equity Shares of the Company in the Stock Exchanges, or on off-market transactions, including inter-se transfer of Equity Shares among the Promoter and Promoter Group during the date from the Board Approval till the completion of the Buyback offer.
Is there a buyback window?
Yes, buyback is proposed to be completed within a fixed period from the date of opening of the buyback
Do all types of equity shares qualify for buyback?
As required under the Act and Buy-back Regulations, the Company shall not purchase equity shares which are partly paid up, equity shares with call-in-arrears, locked-in equity shares or non-transferable
equity shares, in the Buy-back, until they become fully paid up, or until the pendency of the lock-in, or until the equity shares become transferable, as applicable.