In an open market offer, companies announce a maximum price upto which they can repurchase their shares from investors. However, unlike a tender offer, they need not pay a premium over the current market price. As open market buyback can be done even at the prevailing market price of the share.
In March 2023, SEBI mandated all buyback processes through open market offer to repurchase shares within 1% price range of the last trading price.
