TCS’ Rs 17,000 crore share buyback to open on December 1

The buyback, where investors can sell to the company their shares at an offer price of Rs 4,150 apiece, will close on December 7, TCS said in a regulatory filing on Tuesday.

Update: 2023-11-29 01:00 GMT

Tata Consultancy Services Ltd

MUMBAI: The Rs 17,000 crore share buyback programme of India’s top software services exporter Tata Consultancy Services (TCS) will open on December 1.

The buyback, where investors can sell to the company their shares at an offer price of Rs 4,150 apiece, will close on December 7, TCS said in a regulatory filing on Tuesday.

The information technology bellwether is aiming to repurchase up to 4.09 crore shares (1.12 per cent of the total equity share capital) at Rs 4,150 apiece in a buyback valued at Rs 17,000 crore.

For small shareholders, as defined by those with investments less than Rs 2 lakh, the entitlement ratio has been fixed at 1 share for every 6 shares held on the record date of November 25.

For other qualifying shareholders, the entitlement ratio is set at 2 shares for every 209 shares held. “The company believes that the buyback is not likely to cause any material impact on the profitability or earnings of the company except to the extent of reduction in the amount available for investment, which the company could have otherwise deployed towards generating investment income,” TCS said. “The company believes that the buyback will not impact the growth opportunities of the company,” it added. Tata Sons Private Ltd, which holds 26.45 crore of 72.27 pc of TCS, intends to tender 2.96 crore equity shares. Tata Investment Corp intends to tender 11,358 shares out of 10,14,172 crore shares it holds in the company.

Tags:    

Similar News