TTK Prestige\u2019s offer to buy back one lakh shares for Rs 70 crore began on Thursday. The company had set June 16 as the record date to decide eligible shareholders in a earlier regulatory filing. The buyback offer closes on July 26.\u00a0The shares are being bought back on a proportionate basis through a tender offer, at a price of Rs 7,000, which is about 10% more than its Thursday\u2019s closing price of Rs 6,365.80 on BSE. The offer represents 0.86% of the total number of shares of the company. In 2017 companies have bought back shares close toRs 30,000 crore. This is more than Rs 27,000 crore worth of buybacks done in 2016. Buybacks appear to have become the preferred route for companies to return wealth to shareholders, especially since dividend income, of overRs 10 lakh per annum, is taxable at 10% in the hands of all residents, domestic companies, trusts or funds except those established for religious, educational or charitable purposes. The government is also using the buyback route to tap the coffers of cash-rich PSUs ; it hopes to be able to meet its divestment target this way. Of the Rs 46,246.58 crore raised by the government through the disinvestment route in 2016-17, nearly Rs 19,000 crore after state undertakings offered their shares in buybacks. Buybacks are the process by which companies repurchase their shares from stakeholders. The bought-back shares are extinguished shrinking the firms\u2019 equity base.