Agree, tender route have been better. But in this route as well, one can see company buyback order separately in the exchange. The more the number of shares extinguished at lower price will be good for shareholders who hold the shares. This will increase the EPS and future dividend to shareholders.
Further, if you analyze the cashflow statement of last year, they have repaid all loans and still generating huge cashflow. Given they are yet to get approval for new plant, the cash was piling up. They had two ways to deploy (a) pay special dividend (b) buyback of shares. Among these I think buyback is best particularly here since management is not participating. This gives 2 clear signals:
1. Efficient capital deployment and rewarding minority shareholders
2. Promoter's confidence in the company since they are increasing the stake and not participating in the buyback