Tata Consultancy Services (TCS), India’s largest IT services company, has fixed November 25 as the record date for its Rs 17,000-crore share buyback plan that was announced last month. The record data determines the eligibility of shareholders who can participate in the process.
“The company has fixed Saturday, November 25, 2023, as the record date for the purpose of determining the entitlement and the names of the equity shareholders who shall be eligible to participate in the buyback,” TCS said in a BSE filing on Wednesday.
Along with its Q2 FY24 results, TCS last month announced its decision to buyback up to 4,09,63,855 fully paid-up equity shares of face value of Rs 1 each at Rs 4,150 per equity share for an aggregate amount not exceeding Rs 17,000 crore, excluding transaction costs, applicable taxes and
other incidental and related expenses.
In a share buyback, a company buys back shares from its shareholders, usually at a premium to prevailing prices, giving shareholders the option to fully or partly exit a stock at a profit. A buyback signals the management’s confidence in its business.
Shares of TCS were on Thursday trading Rs 75.6 or 2.22 per cent higher at Rs 3.474.9 apiece on the BSE at 11:29 am.
Previous Buybacks
Before this, TCS has bought back its shares in 2017, 2018, 2020, and 2022. The IT behemoth, valued at over Rs 13 lakh crore, has bought back shares worth Rs 66,000 crore in the last six years.
TCS bought back its shares for the first time in 2017. The company announced a buyback worth Rs 16,000 crore in February 2017 at an 18 per cent premium to prevailing prices. This was followed by two buybacks of Rs 16,000 crore each in June 2018 and October 2020, at an 18 and 10 per cent premium, respectively. The last buyback was announced in January 2022. The company decided to buy shares worth Rs 18,000 crore at a premium of 17 per cent.
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