TCS announces Rs. 17,000cr share buyback starting on December 1
What's the story
Tata Consultancy Services (TCS) is set to launch a share buyback worth Rs. 17,000 crore. This will start on December 1 and end on December 7, as per the company's exchange filing today (November 28). TCS aims to repurchase up to 4.09 crore equity shares, each with a face value of Rs. 1, accounting for 1.12% of the total issued and paid-up equity share capital as of September 30.
Details
Buyback price set at Rs. 4,150 per share
The shares will be bought back at a price of Rs. 4,150 each. TCS mentioned in its exchange filing that the buyback would not significantly affect the company's profitability or earnings. However, there will be a reduction in the amount available for investment, which could have been used to generate investment income.
What Next?
Promoters to participate in the buyback
Tata Sons Private Limited plans to tender 2,96,03,690 shares, while Tata Investment Corporation Limited intends to tender 11,358 stocks in the buyback. After the buyback, the promoter and promoter group shareholding will change from 72.3% to 72.41%. This will be TCS's fifth share buyback since its first in February 2017, with subsequent buybacks in June 2018, October 2020, and January 2022.