B Ltd. has an issued capital of 5 Crore equity shares of ₹10 each. The company has free reserves of ₹300 Crore. The stock price quoted in stock market is ₹300. The promotor holds 70% of the equity capital in the company.

B Ltd. has an issued capital of 5 Crore equity shares of ₹10 each. The company has free reserves of ₹300 Crore. The stock price quoted in stock market is ₹300. The promotor holds 70% of the equity capital in the company. B Ltd. has decided to distribute part of its surplus cash to its shareholders. The company short-listed two options: (i) Declare a dividend of 160 percent. (ii) Buy-back 2,00,000 equity shares @ ₹400 per share by way of Tender Route. Comment on the following aspects: (c) In case of buy-back by way a tender route and it is fully subscribed and the promotors also tender shares as per their entitlement, what will be the impact on the promotor's holding ?