The buyback program of the country’s largest software services provider company Tata Consultancy Services i.e. TCS has started from December 1. Through this share buyback, TCS will buy back 4.09 crore shares, which is 1.12% of the total equity share capital.
This buyback will be done at a price of Rs 4,150 per share, due to which its total value will be Rs 17,000 crore. Thursday’s closing price is Rs 3,487.60, accordingly buyback is being done at 19% premium. Whereas in January 2022 the buyback was done at 17% premium.
At what ratio will buyback happen?
For small shareholders whose investment is less than Rs 2 lakh, the entitlement ratio is 1 share for every 6 shares as on the record date of November 25. For the remaining eligible shareholders, the entitlement ratio has been fixed at 2 shares per 209 shares. The buyback will continue till December 7.
The total size of share buyback is 4,09,63,855 shares. Tata Sons, which holds 26.45 crore shares of TCS, will put 2.96 crore shares for sale. Tata Investment Corporation will hold 11,358 shares out of 10,14,172 shares.
When did TCS buyback come?
This will be TCS’s 5th share buyback since 2017. Before this, last year in January 2022, TCS had done share buyback, in which it bought back the shares at the price of Rs 4,500 per share, due to which the value of buyback was Rs 18,000 crore. Buyback was also brought in October 2020, June 2018 and February 2017. Share buyback was done at the price of Rs 3,000 in the year 2020, Rs 2,100 in 2018 and Rs 2,850 in 2017. Each buyback was worth Rs 16,000 crore.
