Buyback Acceptance Ratio Calculator
Estimate how many of your tendered shares a buyback will accept and what you’ll receive. Enter the shares you tender, the acceptance ratio and the buyback price.
Headline estimate = acceptance ratio × shares tendered. Actual tender offers accept your pro-rata entitlementfirst, then additional shares from the unsubscribed pool, so small shareholders often get a higher effective ratio. Payout is before tax — buyback proceeds are now taxed in the shareholder’s hands. Estimate only, not tax or investment advice.
In a tender-offer buyback, the company offers to buy a fixed number of shares at a fixed price from shareholders on the record date. If more shares are tendered than the company will buy, the offer is oversubscribed and only a fraction — the acceptance ratio — is bought back per shareholder. Small shareholders (record-date holding up to ₹2 lakh) get a reserved 15% of the buyback, which typically lifts their acceptance ratio above that of large holders.
Since 1 October 2024, buyback proceeds are taxed as a deemed dividend in your hands at your slab rate — see our guide to how buybacks are taxed. Browse live and recent offers on the buyback tracker.
Buyback acceptance — frequently asked questions
- What is the acceptance ratio in a buyback?
- The acceptance ratio is the share of tendered shares that the company actually buys back. If a buyback is oversubscribed, not every tendered share is accepted — an acceptance ratio of 40% means roughly 40 of every 100 shares you tender are bought back and the rest are returned to your demat.
- How is the acceptance ratio calculated?
- For each shareholder category, acceptance ratio ≈ shares reserved for that category ÷ shares tendered in that category. Small shareholders (holdings up to ₹2 lakh on the record date) get a reserved 15% of the buyback, which usually gives them a higher acceptance ratio than large shareholders.
- How do I get the entitlement and additional acceptance?
- You are first entitled to tender a pro-rata number of shares based on your record-date holding. Shares accepted beyond that come from the “additional” pool left by shareholders who did not fully tender. Tendering your full holding maximises your shot at the additional acceptance.
- Are buyback proceeds taxable?
- Yes. Since 1 October 2024, buyback proceeds are taxed as a deemed dividend in the shareholder’s hands at their income-tax slab rate, and the cost of the bought-back shares becomes a capital loss you can set off. This replaced the earlier system where the company paid the buyback tax. Verify the current rules and consult a tax professional.