How to apply for buybacks, takeovers and delistings at Zerodha? (2024)

FAQs

How to apply for buybacks, takeovers and delistings at Zerodha? ›

Shareholder approval through a special resolution is required for buy-back offers that exceed 10% of the company's paid-up equity capital and free reserves. However, if the buy-back does not exceed this threshold, approval from the board of directors via a board resolution is sufficient.

Shareholder approval through a special resolution is required for buy-back offers that exceed 10% of the company's paid-up equity capital and free reserves. However, if the buy-back does not exceed this threshold, approval from the board of directors via a board resolution is sufficient.

Step 1: You can search for the TCS buyback in the search option on the Groww website. Alternatively, an option to apply is also available in our Help and Support section. Step 2: After you land on the TCS buyback screen, enter the number of shares you are eligible for and click on sell.

Open market offer -

In this form of buyback, the company buys the shares from sellers on the stock exchange. The offer document will mention the period during which a company will buy back its shares. There is no specific duration, and this period can extend for a long time.

₹20 plus GST will be charged for OFS / buyback / takeover / delisting orders placed through Console. ₹25 or 0.03% of the transfer value (whichever is higher). First CMR request is free. ₹20 + ₹100 (courier charge) + 18% GST for subsequent requests.

Similar to how one buys shares through their Demat account, the same way one can tender shares during the offer by visiting their online Demat account.

When it buys back, the number of shares outstanding in the market reduces. You will be eligible for buyback if you hold stocks on the record date in your account.

Get the allotted stock buyback amount credited to your bank account and transfer unsold buyback shares to your Demat Account. Apply for stock buyback through our trading platform or contact your nearest branch or customer care.

Can I sell all my shares in buyback? ›

After the buyback offer is closed, the company takes two to three weeks to complete the process. The shares remain in the company's escrow demat account for this duration. As tendered shares doesn't stay in your account, you can't sell them.

The corporation must honour the delisting price. If the firm has been delisted for more than a year, the shareholder might approach the company and negotiate a private sale of the shares to the promoters. This will be an off-market transaction, with the price agreed upon by the seller and buyer.

While Zerodha may be more suitable for active traders seeking advanced features and lower brokerage charges for intraday and F&O trading, Groww could be the preferred option for beginners and investors focused on long-term wealth creation through mutual funds and equity delivery trading.

A buyback will increase share prices: Stocks trade in part based on supply and demand, and a cut in the number of outstanding shares often causes a price increase. Therefore, a company can increase its stock value by creating a supply shock through a share repurchase.

In a stock buyback, a company purchases shares of stock on the secondary market from any and all investors that want to sell. Shareholders are under no obligation to sell their stock back to the company, and a stock buyback doesn't target any specific group of holders—it's open to anybody.

Share buybacks – key points

Shareholder approval is required. There must be sufficient distributable reserves. Funding for the transaction is from the company. All remaining shareholders receive an uplift.

A buyback can benefit investors because they receive their capital back and are often paid a premium over the stock's market price. In addition, there is a boost in the share price for investors who still hold onto the stock; however, buybacks aren't necessarily always good for investors.

(e) the time-limit for completion of buy-back. (4) Every buy-back shall be completed within a period of one year from the date of passing of the special resolution, or as the case may be, the resolution passed by the Board under clause (b) of sub-section (2).

A stock buyback is when a public company uses cash to buy shares of its own stock on the open market. A company may do this to return money to shareholders that it doesn't need to fund operations and other investments.