TCS buyback 2023: Expected price, history, other details. Is Infosys, Wipro, HCL Tech buyback coming soon?

TCS buyback 2023: Indian IT major Tata Consultancy Services (TCS) is set to declare its September quarter earnings today. Besides the result, the market would be eagerly awaiting the outcome of its board meeting where it is likely to consider buyback of shares. The IT behemoth had earlier said its board of directors would consider and approve share buyback in its board meeting scheduled for 11 October. The market expects the buyback price to be around ₹4,300 to ₹4,500 per share and the TCS buyback size to be nearly ₹18,000 crore. With this, the Tata group company will be announcing its fifth share buyback in the last six years.

TCS buyback 2023: Price, size, other expectations

Speaking on TCS buyback, Avinash Gorakshkar, Head of Research at Profitmart Securities said, “Q2 results 2023 season is going to start from today with TCS board discussing and approve the Q2FY24 results of the company. However, market is vigilant about the buyback of shares that the Indian IT major would be announcing today. As per my expectations, TCS buyback size would be around ₹18,000 crore and TCS buyback price can be around ₹4,300 per share to ₹4,500 per share.”

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TCS buyback history

As per the information available on official website of BSE, this would be the fifth buyback of shares by the IT behemoth in last six years. TCS has bought back shares in 2017, 20182020 and 2022. In May 2017, TCS announced buyback of shares worth ₹16,000 crore at a premium of around 18 per cent. In August 2018 and November 2020, Indian IT major once again declared buyback of shares worth ₹16,000 crore each at a premium of 18 per cent and 10 per cent respectively. In February 2022, TCS declared buyback of shares to the tune of ₹18,000 crore at a premium of near 17 per cent.

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Will Infosys, Wipro, HCL Tech follow?

As per the information available on BSE website, TCS buyback is followed by other IT majors like Infosys, Wipro and HCL Technologies. After theannouncement of TCS buyback of shares, Infosys declared a buyback of shares in November 2017 at a premium of nearly 20%. Infosys buyback price in 2017 was at ₹575 per share.

Likewise, Wipro's buyback was announced in September 2017 at a premium of 23%. The company's buyback price in 2017 was ₹240 per share. In June 2019, Wipro once again announced a buyback of shares at ₹325 per share, delivering a premium of nearly 16%. The IT giant once again declared buyback of shares at ₹400 per share in December 2020, giving a premium of around 6%. In June 2023, Wipro declared a buyback of shares at ₹445 per share, delivering around 20% premium to the shareholders who tendered their stocks to reap the benefit of buyback offer.

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In May 2017, HCL Tech declared buyback of shares at ₹500 per share, offering premium to the tune of 20%. In August 2018, HCL Tech buyback was announced once again at ₹550 per share, giving a premium to the tune of 16%.

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