What is a share buyback?
In a buyback, a company uses its own cash to buy some of its shares back from shareholders. It then cancels them, so fewer shares remain.[S1]
What limits does SEBI set?
A buyback can be at most 25% of the company's paid-up capital and free reserves.[S1]
After the buyback, the company's debt generally cannot exceed twice its paid-up capital and free reserves.[S1]
How does a tender offer work?
In a tender offer, the company offers to buy from all shareholders in proportion to their holdings. At least 15% of the offer is reserved for small shareholders.[S1]
A small shareholder is one whose shares were worth up to ₹2 lakh on the record date.[S1] The rules also allow an open-market route, on conditions SEBI has changed over time.
What does a real buyback look like?
Infosys's board approved a buyback of up to 10 crore shares at ₹1,800 each on 11 Sep 2025.[S2] The shares it bought were cancelled on 4 Dec 2025.[S3]
How does a buyback change who owns what?
If promoters do not sell, their stake rises because the total share count falls. Under SEBI's rules, a promoter that declares it will not take part is left out of the entitlement ratio.[S1]
Where do you see it on Cityfort?
Stock pages list buybacks in "What it does with profit", next to dividends. The block below shows dividend payout and dividend per share for each company on Cityfort.