TCS BUYBACK 2020 | LATEST TCS NEWS | TCS BUY BACK RECORD DATE | TCS DIVIDEND & BUYBACK PRICE
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.
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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.
Tentative Record Date To Participate In TCS Buyback
Identifying from the last TCS Buyback announcements it took nearly 2 months for entering in Ex -Buyback process and completed in another 6 weeks of time.
So it’s nearly 3 weeks of time that has elapsed. TCS Board of Management is expected to announce the Ex- date anytime sooner in next – 4 to 5 weeks which could be 1st week of December. This is assuming that there are no changes made into SEBI Buyback rules since the last buyback of TCS.
Latest Buybacks 2020