India’s largest IT company Tata Consultancy Services has announced a repurchase of 5,33,33,333 (Five crore thirty three lakh thirty three thousand three hundred thirty three) equity shares for an aggregate amount of not more than Rs.16,000 crore with a pricing of Rs.3000 per share. The proposal was approved by the board of Tata Consultancy Services Ltd. In the meeting held on 7th October.

The 5.33 crore equity shares counts for 1.42 % of the total paid-up equity shares of the firm given at a price of Rs.3000 per share that means it is being given at a premium of 9.6% at Wednesday’s closing price of Rs.2737.40 on BSE.

Although people were expecting a much higher buyback of somewhere around Rs.25,000 crore considering they had Rs.50,000 of net cash.

It included a schedule of activities related to the buyback, which showed date of opening of the buyback offer as December 18, 2020 and closing as January 1, 2021. The last date of settlement of bids on the stock exchanges is January 12, 2021.

Also Check:- Latest Share Buyback 2020

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TCS Share Buyback Offer Details

TCS Share Buy Back Plan | TCS Buyback Shares

Buyback Type: Tender Offer
TCS Buyback Record Date: 28.11.2020
TCS Buyback Offer Amount: ₹ 16000 CR
Date of Board Meeting approving the proposal: Oct 07 2020
Date of Public Announcement: Oct 07 2020
TCS Buyback Offer Size: 1.42%
Buyback Number of Shares: 5,33,33,333
Price Type: Tender Offer
Face Value (FV): 10
TCS Buyback Price: ₹ 3000 Per Equity Share
TCS Buyback Premium: 15%

It’s the third buyback by TCS in the last four years, and the first by an IT company in this fiscal. Mumbai-based TCS had previously made buybacks worth around Rs 16,000 crore each in 2017 and 2018 as part of its long-term capital allocation policy of returning excess cash to shareholders. Both repurchases were conducted at a premium to the company’s market value.

In 2018, TCS had undertaken a share buyback programme of Rs.16000 crore at a price of Rs.2100 per equity share. At this price, the company entailed 7.61 crore equity shares. In 2017, the company conducted a similar repurchase programme.

The company on Wednesday gave an account of its quarterly results for the months of July-September period. According to the reports, profits rose by 6.6% consecutively while the margins bounced back. The board also sanctioned a second interim dividend of Rs.12 per share for this fiscal.

Shares of TCS closed 1.42% higher before the buyback and earnings announcement. That compares with a 0.66% gain in the benchmark Nifty 50 Index.

Upcoming Buyback 2020

TCS Buyback Important Dates

In this section we have covered all important dates related to “TCS Buyback Date”. Dates are updated as they are announced. The most noted dates are TCS record date and TCS buyback open and close dates, which one should use to participate in buyback.

TCS Buyback Offer Dates
Buyback Activity Date
Board Meeting for TCS Buyback proposal 07.10.2020
TCS Buyback Approval date 07.10.2020
Public Announcement of TCS Buyback 07.10.2020
TCS Buyback Record Date 28.11.2020
TCS Buyback opens on/Buyback Opening Date 18.12.2020
TCS Buyback closes on/Buyback Closing Date 01.01.2021
Cut-off date to receive completed tender forms by Registrar 03.01.2021
Cut-off date for verification by the Registrar 03.01.2021
Cut-off date to inform Stock Exchange on acceptance or
non-acceptance of tendered Equity Shares by Registrar
Last date of settlement of bids on the stock exchange 12.01.2021
Last date to return unaccepted shares by Registrar 12.01.2021
Last date of extinguishment of Equity Shares 12.01.2021

Tentative Record Date To Participate In TCS Buyback

TCS buyback record date is November 28, 2020.

Latest Buybacks 2020

TCS Share Holding Pattern as of SEP 2020

Stock Holding table gives a clear picture on retail investor holdings of TCS shares which helps investor to decide on participating in buyback offer. The less number of retail holdings means higher chance of acceptance in TCS buyback under retail category which is equal to higher profit.

The Shareholding Pattern page of Tata Consultancy Services Ltd. presents the Promoter’s holding, FII’s holding, DII’s Holding, and Share holding by general public etc.

Shareholding Pattern – Tata Consultancy Services Ltd.
Holder’s Name No of Shares % Share Holding
No. Of Shares 3752384706 100%
Promoters 2703542000 72.05%
Foreign Institutions 600369219 16%
N Banks Mutual Funds 106448823 2.84%
Central Govt 2504680 0.07%
Others 20932871 0.56%
General Public 130433389 3.48%
Financial Institutions 188153724 5.01%

How to Apply for TCS Buyback?

Now if you are wondering ‘How do I apply for a buyback?’ OR “How to Participate in buyback?” we’ve got you covered. When it comes to share-buyback schemes, the capital market regulator has compulsorily reserved a buyback portion of 15% for retail investors who possess in-hold shares in a company worth upto ₹2 lakhs.

This percentage is also taking into account the scrip’s market value as seen on the record date of the buyback offer.

During the application process of share buyback, you will be given a tender form by the company. This form is where you enter the number of shares of that company that you wish to tender.

There is a ratio of acceptance attached to the tender form which signifies how likely the company is to accept your request for share buybacks. Different companies have different ratios for share buybacks.

Profit from the buyback on the bases of acceptance Ratio:

Buy 66 Shares at CMP of Rs.2752( 2,00,000/3000=66)

TCS Buyback Acceptance Ratio 33% 50% 75% 100%
Amount Invested in Buyback 181632 181632 181632 181632
No. of Shares buyback 21 33 49 66
Buyback Profit 5208 8184 12152 16368
Profit 2.87% 4.5% 6.6% 9.1%

Here is what you can expect in a typical tender form given by a company. There are normally three fields as follows:

  1. The number of shares you hold from the said company as on the record date
  2. The number of shares that fit the eligibility criteria for buybacks
  3. The number of shares that one is applying for a buyback.

Apply TCS buyback from Zerodha

Here is complete method from Zerodha

You can apply for Buybacks on Console> Portfolio> Corporate action order window

  • Hover your mouse on the stock and select ‘Options’ and click on ‘Place order’
  • Enter the number of shares you want to tender and click on ‘Submit’
  • Buyback/Takeover/Delisting orders are collected until 6:00 PM, one trading day prior to the offer end date. Ensure to hold sufficient quantities in your demat account before closure of the offer end date. (Do not sell the shares after placing the order). Only shareholders who hold the shares as on the record date will be eligible for the corporate action.

Apply TCS buyback from Upstox

Company Contact Information

Tata Consulting Services (TCS)

Share Register/Transfer Agent*
TSR Darashaw Limited (TSRDL)

Ph: +91-22-6656 8484
Fax: +91-22-6656 8494

Mailing Address:
6-10, Haji Moosa Patrawala
Industrial Estate, 20, Dr E Moses Road,
Mahalaxmi, Mumbai 400 001

Shareholder Grievance Redressal

Mailing Address:
Tata Consultancy Services Limited
9th Floor, Nirmal Building, Nariman Point,
Mumbai 400 021, India

Ph: +91-22-6778 9595
+91-22-6778 9191
+91-22-6778 9179
Fax: +91-22-6630 3672

Investor Relations
Kedar Shirali

Head, Global Investor Relations

Registrar Contact Information

Link Intime India Private Limited
C-101, 1st Floor, 247 Park,
Lal Bhadur Shastri Marg, Vikhroli (West), Mumbai 400 083
Tel:+91 022 49186200
Contact Person: Mr. Sumeet Deshpande

***Related Queries***
TCS Buyback Important dates – Record Date, Buyback Start and End date. Buyback Details – Buyback Price, Buyback Offer Size, Buyback Number of Shares, Retail Investors limit.

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TCS Buyback 2020 FAQs:

When is TCS Buyback Record Date?

TCS buyback 2020 record date will be 28.11.2020.

When is TCS Buyback announcement Date?

TCS buyback 2020 announcement date is Oct 07 2020.

What is TCS Buyback Price?

The company has fixed the price at ₹3000 Per Equity Share.

How can I get TCS buy back?

As per the TCS record date (28.11.2020) you need to have TCS shares in your demat account. You can participate in buyback after having the stock in your account.
Once you have shares in demat, you can participate in the buyback process which is opening from [Not Announced], by selling your shares through your broker on NSE or BSE. Then on [Not Announced] the payment will be given to you for accepted shares and unaccepted shares will be returned to your demat account.

How much I can make with TCS buyback offer?

Its all depend on acceptance ratio which usually announce with Letter of Offer.
The percentage of proportionate acceptance varies from company to company. This percentage can be also 100% which means that company buys all of your shares.

How to Participate in TCS buyback offer?

Steps to participate in TCS buyback:
On Record date (28.11.2020) you must have share of TCS in your demat account. Depositing of share in your DP account usually take T+2 days, so you need to plan your buying accordingly.
After that company announces buyback open and close window, so you need to tender your share in buyback process. You can do this online or contact your broker to tender your share in buyback, so he can place a request on your behalf.
Next step is with registrar – depend on buyback acceptance ratio, your shares will be sold in buyback process and fund will directly debited in your bank account. Any rejected share will be revert in your demat account which you can sell in open market or hold for long term gain.

How many TCS share are eligible for buyback?

Share holders who hold less than 2 lakh worth of shares are consider in Retail Category. All others will consider in General Category. Last trading price on record date will be used to calculate the eligibility criteria.

When I need to tender TCS share for buyback?

Buyback opening date for TCS: (Coming Soon)
Buyback closing date for TCS: (Coming Soon)
This is the window when you need to submit your application for proposal for share buyback.

When I will know how much shares accepted in TCS buyback offer?

As this is a buyback tender offer, shares are accepted in proportionate basis. Proportionate acceptance / rejection will be returned back to the eligible shareholders directly by the Registrar on or before (Coming Soon).

Why is TCS buying back shares?

TCS plans to buy back up to 5.33 crore equity shares of the company for an aggregate amount not exceeding 16,000 crore. TCS proposed to buy back shares at ₹3,000 per share.
The company had announced the mega buyback offer as part of its long-term capital allocation policy of returning excess cash to shareholders.

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