To simply put, a buyback is a company voting for itself, while quietly making you richer per share. Here’s why buyback matter: 

• Signal of confidence - Management is saying "our stock is undervalued". 
• Your slice grows - After buyback, there are fewer shares outstanding, which makes your holding a larger % of the company.
• Excess cash at work - Instead of letting cash sit idle, the company returns it to shareholders.
• Tax-efficient reward - Historically more tax-friendly than dividends in India (note: post-Budget 2024, buyback gains are now taxed as capital gains in the hands of the investor).