TCS announces share buyback dates, fixes retail entitlement ratio at 17%; Details here | Mint
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Business News/ Markets / Stock Markets/  TCS announces share buyback dates, fixes retail entitlement ratio at 17%; Details here
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TCS announces share buyback dates, fixes retail entitlement ratio at 17%; Details here

TCS has set the dates for share buyback programme, opening on December 1 and will close on December 7.

TCS announces share buyback dates, retail entitlement at 17% (Photo: Reuters)Premium
TCS announces share buyback dates, retail entitlement at 17% (Photo: Reuters)

Tata Consultancy Services (TCS) has set the dates for share buyback programme, opening on December 1 and will close on December 7. Investors have the option to submit their shares to the company at a rate of 4,150 per share.

Small shareholders, categorized as those with investments totaling less than 2 lakh, have been assigned an entitlement ratio of 1 equity share for every 6 shares held as of the record date, which is November 25. This ratio corresponds to approximately 17%.

For other qualifying shareholders, the entitlement ratio is set at 2 shares for every 209 shares held.

The buyback price of 4,150 represents a 20% premium over Friday's closing price of 3,457.60 on the BSE. Throughout the day, the stock price traded 0.6% higher at 3,478.80.

TCS anticipates that the buyback will result in an uptick in its EPS from 58.52 to 59.18 on a standalone basis, and the net worth is expected to increase from 49.89% to 62.56%.

If all shareholders exercise their buyback entitlement to the full extent, the promoters' combined shareholding will rise to 72.41%, up slightly from the current 72.3%.

Tata Sons and Tata Investment Corporation, two holding companies within the Tata Group, have indicated their intention to take part in the buyback, potentially tendering a combined maximum of 2,96,15,048 equity shares. The overall buyback encompasses 4,09,63,855 shares.

The information technology giant plans to fund the buyback through existing surplus funds and/or internal accruals.

"This is in furtherance of our letter no. TCS/BM/162/SE/2023-24 dated October 11, 2023 and letter no. TCS/BB/SE/201/2023-24 dated November 15, 2023, informing the decision of the board of directors and the members of the Company, respectively, to buyback up to 4,09,63,855 (Four crore nine lakh sixty three thousand eight hundred and fifty five) fully paid-up equity shares of face value of Re 1 each at 4,150 (Rupees four thousand one hundred and fifty only) per equity share for an aggregate amount not exceeding 17,000 crore (Rupees seventeen thousand crore only) excluding transaction costs, applicable taxes and other incidental and related expenses (“Buyback")," TCS said in an exchange filing.

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Published: 28 Nov 2023, 05:11 PM IST
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