The country’s largest IT company TCS (Tata Consultancy Services) has set November 25 as the record date for buyback of Rs 17,000 crore. This information has been given in the company exchange filing. TCS had announced share buyback of Rs 17,000 crore on October 11.
Buyback price fixed at Rs 4,150
In the buyback, the company will buy 4.09 crore (4,09,63,855) shares, which is 1.12% of the total paid-up equity share capital. This will be the fifth buyback of the company after 2017. The company has fixed the price for buyback at Rs 4,150, TCS shares closed at Rs 3,408.60 on Wednesday.
Since the buyback announcement on October 11, TCS shares have fallen by 3.9%. According to the shareholder report, the buyback offer is at a premium of Rs 20.45% and 20.26% to the volume weighted average market price of the shares on BSE and NSE during the three months preceding the date of buyback notice. At present, promoters’ share in TCS is 72.30%.
It is proposed to buyback from existing shareholders on a proportionate basis under the tender offer route, using the stock exchange mechanism. This is part of the company’s way of ensuring increased value for shareholders.
