What is tender offer route in buyback?

A tender offer route in a buyback is when a company offers to buy back its shares from shareholders at a fixed price, usually at a premium to the market price. Shareholders can choose to "tender" or sell some or all of their shares back to the company during a specified period.

Features:

• Announced with a record date & buyback price
• Shareholders submit their shares via brokers
• Shares accepted based on buyback ratio (e.g., 3 out of 20 shares)
• Paid at a premium price — better than market price
• After the buyback, total outstanding shares reduce

Example: If a company offers to buy back shares at ₹500 (while market price is ₹450), you can tender shares and earn a ₹50 premium.