MUMBAI, India: Tata Consultancy Services (TCS), India’s largest IT services company, has announced that its Rs 17,000-crore share buyback will start on December 1, 2023, and close on December 7, 2023. The company will repurchase up to 4.09 crore paid-up equity shares at Rs 4,150 apiece for a maximum total value of Rs 17,000 crore.
The buyback will be open to all eligible shareholders, including retail investors. The retail entitlement has been fixed at 17%, which means that retail investors will be able to tender up to 17% of their eligible shares.
The share buyback is the fifth by TCS in the past six years. The company has returned over Rs 60,000 crore to shareholders through share buybacks in the past six years.
Key Highlights of the TCS Share Buyback
- Buyback size: Rs 17,000 crore
- Number of shares to be bought back: Up to 4.09 crore
- Buyback price: Rs 4,150 per share
- Record date: November 25, 2023
- Opening date: December 1, 2023
- Closing date: December 7, 2023
- Retail entitlement: 17%
Rationale for the Share Buyback
TCS has cited several reasons for the share buyback, including:
- To improve return on equity (ROE)
- To enhance the value of its shares
- To increase liquidity in the stock
- To reward shareholders
Analysts’ Views
Analysts have welcomed the share buyback, saying that it is a positive move for TCS shareholders.
Impact on TCS’ Share Price
The announcement of the share buyback has been positive for TCS’ share price. The stock has risen by over 5% since the announcement was made on October 11, 2023.
Overall, the TCS share buyback is a positive development for the company and its shareholders. The buyback is likely to boost the company’s share price and improve its ROE. It will also increase liquidity in the stock and reward shareholders.