What does buyback of shares mean?

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Buyback of shares means a corporate event through which a company can buy back its own shares that it had previously issued.

A company can repurchase its shares from the shareholders through different routes as allowed by SEBI, Companies Act 1999. The buyback of shares is beneficial for the company as well as the shareholders. It helps the company to increase its promoter stake in the company. It makes efficient use of idle cash by rewarding the shareholders with a premium price for the shares.

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