Tata Consultancy Services Ltd (TCS) said on Tuesday that its Rs 17,000-crore share buyback will begin on December 1 and end on December 7. The IT firm intends to buyback up to 4.09 crore paid-up equity shares at a price of Rs 4,150 per share, for a maximum total value of Rs 17,000 crore. When the company reports its September quarter results on October 11, the buyback strategy will be revealed.
"The Company believes that the Buyback will have no material impact on the Company's profitability or earnings, except to the extent that it reduces the amount available for investment, which the Company could have otherwise deployed towards generating investment income." "Assuming a full response to the Buyback, the Company's funds deployed towards the Buyback would not exceed Rs 17,000 crore, excluding transaction costs, applicable taxes, and other incidental and related expenses," TCS stated in a stock exchange filing on Tuesday. Retail entitlement was set at 17%, with the buyback ratio set at one equity share for every six equity shares held on the record date, November 25, 2023.
Tata Sons Private Limited would tender 2.96 crore equity shares, while Tata Investment Corporation Limited will submit 11,358 shares. TCS' stock closed 0.5% higher on the BSE on Tuesday, at Rs 3,473.3.
TCS will execute a share buyback exercise for the fifth time. The last four buybacks were similarly completed by tender offer. A tender offer buyback occurs when a firm repurchases existing shareholders' shares at a specified price.
TCS announced a Rs 18,000 crore share buyback in January last year at Rs 4,500 per share. The IT behemoth announced a Rs 16,000 crore repurchase in December 2020, at a price of Rs 3,000 per share. The other two buybacks, each worth Rs 16,000 crore, were completed in 2017 and 2018.
