Which purpose of utilizing securities premium reserve can maximize the return to shareholders of a company?

Buy-back of own shares

Securities premium reserve is created when a company issues shares at a premium (i.e., at a price higher than their nominal or face value) and collects the excess amount from shareholders. This reserve represents the premium received over and above the face value of the shares. When a company decides to buy back its own shares from the market, it can use the securities premium reserve to fund the buy-back. By doing so, the company returns some of its surplus funds to shareholders by purchasing their shares at the market price. This can lead to an increase in the earnings per share (EPS) for the remaining shareholders since the total number of outstanding shares decreases as a result of the buy-back.