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.
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.
| 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 | 03.01.2021 |
| 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 |
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Tentative Record Date To Participate In TCS Buyback
TCS buyback record date is November 28, 2020.
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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:
- The number of shares you hold from the said company as on the record date
- The number of shares that fit the eligibility criteria for buybacks
- 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
Email: csg-unit@tsrdarashaw.com
Website: www.tsrdarashaw.com
Mailing Address:
6-10, Haji Moosa Patrawala
Industrial Estate, 20, Dr E Moses Road,
Mahalaxmi, Mumbai 400 001
Shareholder Grievance Redressal
Email: investor.relations@tcs.com
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
Email: kedar.shirali@tcs.com
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
E-mail: rites.buyback2020@linkintime.co.in
***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:
TCS buyback 2020 record date will be 28.11.2020.
TCS buyback 2020 announcement date is Oct 07 2020.
The company has fixed the price at ₹3000 Per Equity Share.
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.
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.
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.
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.
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.
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).
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.