Mayur Uniquoters is undergoing a buyback wherein company would purchase upto 6.25 lac shares from the existing shareholders at Rs 650 per share, aggregating upto Rs 40.62 Cr.

The total payout would be equal to about 2% of the market cap (at the time of announcement), making it a tiny buyback essentially in lieu of dividends. Assuming promoters also participate here, we would not be able to offer larger quantity than 2% of what we hold, hence this is not an arbitrage opportunity wherein we sell all our shares to company at 650 and buy again via exchange at market price.

While dividends and buyback both attract taxation, some companies still prefer buyback over dividends for distributing payouts, as that’s more efficient from the perspective of continuing shareholders - higher Earnings Per Share on a compact ownership.

This offer can be totally ignored unless you prefer some annual yield via dividend/buybacks. The window to offer shares closes on 6th April.

Offer Details: https://www.bseindia.com/xml-data/corpfiling/AttachHis/C95D5F44-EBDF-4E08-8686-9C4963A79126-124654.pdf