TCS Reveals Critical Details For Rs 18,000 Crore Share Buyback Schemes: Dates, Ratio & More

The IT Major Consumer Tata Consultancy Services (TCS) on March 5 announced the purchase dates for its Rs 18,000-crore share buyback offer, which was announced in January this year. The offer will open on March 9, and the window will close at 5pm on March 23, he said.

Sharing the right to repurchase information, TCS said in the category reserved for minority shareholders, the repurchase rate will be “1 equity share for every 108 equity shares held on the record date”.

In the general category of all other eligible shareholders, the purchase rate will be “1 equal share of every 108 shares held by record date”.

Fourth Buyback

Significantly, this will be the fourth TCS buyback and, in the previous three
buybacks, Tata Sons has been a major successor.

In 2021, TCS bought more than 53 million shares for Rs 3,000 and 33.33 million shares were accepted under this offer. In 2017 and 2018 again, it bought twice and the size was around Rs 16,000 crore each. At the end of September 2021, TCS had cash and items worth Rs 51,950 crore.

This Move Comes After Tata Sons Buying Air India

The latest move comes after Tata Sons bought Air India from the government for Rs 18,000 crore. The company will pay Rs 2,700 crore to the government and another will pay off the debt. Tata Sons owns 72% of TCS shares currently.

In September 2021, Infosys announced a return of Rs 9,200 crore while in January 2021 Wipro made a refund of Rs 9,500 crore. In 2018, HCL Tech had made a refund of Rs 4000 crore.

Analysts say that buying stocks often enhances earnings per share and returns accumulated capital to stocks while supporting stocks during volatile market conditions.