TCS board approves Rs 16,000 crore share buyback at Rs 2,100 per share
16 June 2018
The board of directors of IT major Tata Consultancy Services today approved a Rs16,000-crore share buy-back plan, at Rs2,100 per share to offload part of its surplus cash to shareholders.
At Rs2,100 per share TCS is expected to buy back some 76 million shares under the current scheme.
The buyback is at a 15-per cent premium to the stock’s price at its previous closing. The stock traded at Rs1,841, up 3 per cent in the afternoon trade when the news broke, which lifted the company’s market cap back to Rs7,00,000 crore.
TCS promoters hold 71.92 per cent stake in the company.
"The buyback is proposed to be made from the shareholders on a proportionate basis under the tender offer route using the stock exchange mechanism in accordance with the provisions contained in the Sebi (Buy Back of Securities) Regulations, 1998,” the company said in its BSE filing.
The company in a filing on 13 June had informed the exchanges about the meeting of its board to consider the buyback programme.
TCS had announced Rs 16,000 crore buyback of shares last year and followed it up with issue of bonus shares in April.
Indian IT companies are buying back shares in a bid to return excess cash to shareholders. Other IT majors Infosys and Wipro had also earlier bought back shares.