TCS Buyback: Rs 17,000 Crore Issue To Open On Dec. 1

JM Financial Services will be the broker for the buyback and the BSE will be the designated stock exchange for it.

<div class="paragraphs"><p>The TCS House in Mumbai. (Photo: Company)</p></div>
The TCS House in Mumbai. (Photo: Company)

Tata Consultancy Services Ltd. has set Dec. 1 as the opening date for its Rs 17,000 crore buyback, and it will close on Dec. 7.

The IT major will buy back a maximum of 4.09 crore equity shares at an offer price of Rs 4,150 apiece, not exceeding Rs 17,000 crore, according to an exchange filing on Tuesday.

This represents 1.12% of the total issued and paid-up equity share capital of the Company as on Sept. 30, 2023.

JM Financial Services Ltd. will be the broker for the buyback, and the BSE will be the designated stock exchange for it.

The buyback is not likely to cause any material impact on profitability or earnings, except to the extent of the reduction in the amount available for investment, which the company could have otherwise deployed towards generating investment income, it said.

Post-buyback, the promoter and promoter group companies total holdings in the firm will rise to 72.41% from the current 72.3%.

The Tata Group company approved on Oct. 11 its fifth such buyback since 2017.

From March 9–23, 2022, the firm repurchased 40 million shares of face value Re 1 each at Rs 4,500 apiece for an aggregate amount of Rs 18,000 crore, according to data available on the stock exchanges.

TCS had similar share buybacks in October 2020, June 2018 and February 2017.

Shares of TCS closed 0.38% higher at Rs 3,470.15 apiece on the NSE compared with a 0.48% advance in the Nifty 50.

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