In tender offer, 15 % of the buyback is reserved for small investors i.e. those holding shares below Rs.200,000. So usually, they get a higher entitlement of the buyback than institutional investors.
In tender offer, investors have certainty that their shares will be bought back at the buyback price (as per their entitlement). In open market buyback, investors have to sell at the market price which is often below the buyback price. So there is no additional benefit.
In tender offer, investors do not have to pay capital gains tax. Company pays the buyback tax. In open offer, capital gains tax is applicable for selling shareholders.
So generally tender offer is good for selling shareholders, open market buyback is good for continuing shareholders.
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