How will shareholders benefit from the buyback of shares?

Zerodha (Trade with the best stock broker)

Invest brokerage-free Equity Delivery and Direct Mutual Funds (truly no brokerage). Pay flat Rs 20 per trade for Intra-day and F&O. Open Instant Account and start trading today.

The shareholders also get to enjoy the benefits of a buyback as much as a company does.

  1. The buyback provides an opportunity to shareholders to exit at a price higher than the current market price.
  2. The buyback increases the percentage of shareholder's ownership in a company due to a reduction in the total number of outstanding shares.
  3. The buyback serves as a health check of a company's healthy financial position.
  4. The capital gains made in buyback are exempted from tax for the shareholders.


Add a public comment...