When the promoters sell at 650, does it mean that they believe that the stock is only worth 650 to them? They are pocketing the Rs 150 difference proportionate to their entitlement. Also, buyback at a premium is value eroding. Why not just give a dividend for the same amount? If they are doing it to prevent the shares from a free fall, they should instead wait so they can buy back for even cheaper.
Isn’t it better to see the promoter shareholding increasing rather than decreasing? For me personally buybacks via tender offer route makes this company less attractive than if they were increasing true shareholder value by buying back at the best possible price. Is it really possible to support the share price indefinitely by buying back at a premium?