1 min read.Updated: 06 Aug 2018, 05:59 PM ISTLivemint
TCS had said that the share buyback will take place through a tender route. TCS plans to buy back up to 7.61 crore shares at a price of ₹2,100 a share.
India’s biggest IT services company TCS has announced 18 August, 2018, as the record date for buyback of shares. TCS shareholders will be able to participate in the buyback, if they holds shares in their demat accounts as on the record date. This announcement was made on Saturday. TCS shares closed on a flat note today, falling 0.07% on the BSE to ₹ 1,976. In comparison, the Sensex ended 0.36% higher today. A buyback is a mechanism through which a company repurchases a specific amount of its outstanding shares. Buybacks help to improve the earnings per share and return on equity.
Here are 5 things to know about TCS’s buyback offer:
2) The ₹ 16,000 crore buyback is broadly in line with TCS management’s intention of pay out 80-100% of the company’s free cash flow to shareholders. Last year, too, TCS had undertaken a buyback offer of a similar size.
5) According to Sebi’s mandate, companies have to reserve 15% of any buyback for small shareholders with holdings of less than ₹ 2 lakh. This will increase the acceptance ratio for TCS’ retail investors who want to participate in the buyback offer.
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