Tata Consultancy Services Ltd.'s board has approved a proposal to buy back shares worth up to Rs 18,000 crore.
India's largest software services outsourcer will repurchase four crore shares, or 1.08 % of the total paid-up equity, at Rs 4,500 apiece, it said in an exchange filing. That is a 16.58% premium to Wednesday's closing price.
At the last buyback, approved in October 2020, the company repurchased shares at Rs 3,000 apiece.
It's the fourth buyback by the company since 2017, and the first by an IT firm this calendar year. The Mumbai-based company had previously purchased back shares worth around Rs 16,000 crore each in 2017, 2018 and 2020 as part of its long-term capital allocation policy of returning excess cash to shareholders. Its previous buybacks were priced at a premium to the company's market value.
The buyback is subject to shareholder approval via special resolution through postal ballot.
TCS shares rose 30.59% in 2021 and are up 3.19% so far this year. The company has a market value of Rs 1.42 lakh crore.
Shares of the IT major closed lower on Wednesday at Rs 3,859.9 apiece.
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