India's largest IT firm Tata Consultancy Services (TCS) has approved the buyback of 1.99 per cent of equity share capital, not exceeding Rs 16,000 crore, the company announced after a board meeting that concluded at 2.35 pm on Friday. TCS will carry out the share buyback at Rs 2,100 per equity share, a handsome premium of over 17 per cent against Friday's opening price of Rs 1,800.
"Further to our intimation dated June 12, 2018, we wish to inform you that the Board of Directors of the company at its meeting held today has approved a proposal to buyback up to 7,61,90,476 equity shares of the company for an aggregate amount not exceeding Rs.16,000 crore being 1.99 per cent of the total paid up equity share capital, at Rs. 2,100 per Equity Share," TCS said in a market filing.
"The buyback is proposed to be made from the shareholders of the Company 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 and the Companies Act, 2013 and rules made thereunder," the company further stated.
A total of seven crore sixty one lakh ninety thousand and four seventy six shares will be bought back by the IT major, the company announced. Last year too, TCS exercised a share buyback programme of similar value (Rs 16,000 crore) that materialised in the month of May.
TCS shares jumped to a high of Rs 1,849 in intraday trading before closing at Rs 1,845, 2.94 per cent higher against the previous session's closing of Rs 1,792.25 on the BSE.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
