Tata Consultancy Services (TCS) announced in a filing on November 28 that its Rs 17,000 crore share buyback program is scheduled to commence on December 1 and conclude on December 7.
The IT services company plans to repurchase a maximum of 4.09 crore equity shares with a face value of Rs 1. This buyback constitutes 1.12 percent of TCS’s total issued and paid-up equity share capital as of September 30.
The shares are proposed to be bought back at a price of Rs 4,150.
“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,” said TCS in an exchange filing.
Tata Sons Private Limited intends to tender 2,96,03,690 shares and Tata Investment Corporation Limited intends to tender 11,358 shares.
Promoter and Promoter group shareholding will change from 72.3 percent to 72.41 percent post-buyback.
TCS Share Buyback
In 2017, TCS initiated its first share buyback, acquiring shares valued at 16,000 crore in February at an 18 percent premium to the prevailing market price. Subsequently, there were two more buybacks in June 2018 and October 2020, each amounting to Rs 16,000 crore and featuring premiums of 18 and 10 percent, respectively.
The most recent buyback occurred in January 2022, with the company purchasing shares worth Rs 18,000 crore at a premium of 17 percent.
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