Open offer process

I am kind of noob for this thing Open offer.

i am holding 10 ABB @ 750.

its up 22% today based on this news.

so i started goggling......& got confused. many ppl are comparing the open offer to the rights issue. some claiming open offer is bearish thing.

now what i understand from the money control page is open offer is BUY BACK.

can any one explain the exact process for the open offer in very basic language & what steps does it include.

If a company feels that the market price is very less compared to the worth of the company (say Book value of the share) and the company has a good accumulation of free reserves and surplus, the company (with approval from shareholders) will opt for buying shares in the open market at the rate approved by the shareholders. Suppose, a company's shares are quoting at Rs.50/- and the book value of the share is Rs.120/-, the company may get approval for buying in the open market upto Rs.60/- and go on buying in the open market from Rs.50/- onwards. After buying the shares, those shares will be eliminated from the total shares of the company and thereby, share capital will get reduced; book value will get increased and from next year onwards, EPS will be more.

so is ABB offer includes tender or they are buying from the market directly.

buy back may be in two ways - 1) by giving an open offer to all shareholders - in this method, the offer rate will be given and it will be at a fixed rate 2) by buying in the open market. this will be done by the company directly by placing order in bse / nse at the prevailing rates. the quantity bought and the average rate will be announced by the company to the exchanges