TCS promoters Tata Sons, TICL intend to take part in ₹18,000 cr share buyback

Tata Consultancy Services (TCS), which on Wednesday announced a ₹18,000 crore share buyback offer at 17% premium or ₹4,500 per share, said its promoters Tata Sons and Tata Investment Corporation Ltd (TICL) intend to participate in the offer.

According to a postal ballot notice by the company, Tata Sons and TICL sought to participate in the buyback offer.

Tata Sons holds about 266.91 crore shares in the company and it intends to tender 2.88 crore shares for the buyback, while TICL, which holds 10,23,685 shares, offered to tender 11,055 shares.

At ₹4,500 apiece, the both Tata Sons and TICL stand to gain about ₹12,993 crore. TCS is seeking shareholder approval by way of special resolution for buyback of equity shares of the company.

The remote e-voting period will commence from January 14, 2022 and end on February 12, 2022. The results of the postal ballot will be announced on February 15, 2022, it added.

This is TCS' fourth buyback since 2017 and first for any company in the current calendar year. The company has approved share buybacks worth ₹16,000 crore each in 2017, 2018 and 2020.

On Friday, TCS shares rose 1.67% to at ₹3,963.10 in noon deals on NSE.