TCS Buybacks Shares Worth Rs 18,000 Crore From Investors At 16% Premium: What This Means?
A buyback offer of Rs 18,000 crore at Rs 4,500 per share is announced by Tata Consultancy Services (TCS) today.
TCS Buyback Offering
The IT firm is offering a buyback price at a premium of 16.7 percent over the today’s closing price of the stock.
Tata Consultancy Services (TCS) share price ended 1.5 per cent down at Rs 3,857.25 apiece at the end of today’s trade session.
TCS board of directors of the company has approved the repurchase of up to 4 crore shares.
Further, the IT giant said, “The Board of Directors of the company at its meeting held today has approved a proposal to buyback up to 4 crore equity shares of the company for an aggregate amount not exceeding Rs 18,000 crore, being 1.08% of the total paid-up equity share capital, at Rs 4,500 per equity share,” in a BSE filing.
In the fiscal third quarter, TCS has posted a net profit of Rs 9,769 crore as compared to Rs 9,624 crore in the previous quarter.
TCS Previous Buybacks
Before this, the IT bellwether had a buyback worth Rs 16,000 crore, on December 18, 2020.
That time, it was closed on January 1, 2021, in which group holding firm Tata Sons rendered shares worth around Rs 10,000 crore.
As part of this offer, a total of 3.3 crore Tata Sons’ shares were accepted.
As part of that offer, over 5.33 crore equity shares were bought back for Rs 3,000 apiece.
TCS Performance In Last One Year
TCS share hit a high of Rs 3,930.15 and a low of Rs 3,836.80 apiece during Wednesday’s intraday trade.
Coming to the trading volumes, a total of 1.23 lakh shares exchanged hands on BSE and 32.03 lakh shares traded on NSE on Wednesday.
During the October-December quarter, TCS shares fell by 1.11 per cent.
On the other hand, the Nifty 50 index has declined by 1.01 percent during the same quarter.
Prior to this, TCS share price has gained nearly 7 per cent In the last one month.
In the last six month, it has appreciated by 21 percent and over 22 percent in the last one year.