Active Stocks
Tue Jun 18 2024 15:44:35
  1. Tata Steel share price
  2. 181.15 -1.04%
  1. Power Grid Corporation Of India share price
  2. 331.70 3.17%
  1. State Bank Of India share price
  2. 844.60 0.52%
  1. HDFC Bank share price
  2. 1,608.75 0.71%
  1. Wipro share price
  2. 491.85 3.04%
Business News/ Markets / Stock Markets/  TCS buyback: IT major approves 17,000 crore buyback at price of 4,150/share
BackBack

TCS buyback: IT major approves ₹17,000 crore buyback at price of ₹4,150/share

TCS buyback: Tata Consultancy Service, on Wednesday, announced its fifth buyback in six years. The IT giant also announced its Q2FY24 financial result today

TCS announced its Q2FY24 result on WednesdayPremium
TCS announced its Q2FY24 result on Wednesday

TCS buyback: Tata Consultancy Services approved share buyback up to 17,000 crore at the price of 4,150 per share via tender offer on Wednesday. Along with the buyback announcement, the IT major also announced its financial result for the second quarter of FY24.

TCS result LIVE Updates

The company board approved a proposal to buyback up to 4.09 lakh crore of equity shares of the company. The buyback amount will be around 17,000 crore. It will represent 1.12% of the total paid-up equity share capital, at 4,150 per equity share.

Also Read: TCS Q2 Results: Net profit rises 8.7% on year to 11,342 crore; declares dividend

“The Board of Directors of the Company at its meeting held today has approved a proposal to buyback up to 4,09,63,855 (Four crore nine lakh sixty three thousand eight hundred and fifty five) Equity Shares of the Company for an aggregate amount not exceeding 17,000 crore, representing (1.12)% of the total paid-up equity share capital, at 4,150  per Equity Share," said the company in its stock filing. 

Also Read: TCS declares second interim dividend of 9 per share

The Indian IT major reported a net profit of 11,432 crore in the Q2 FY24. With this, it registered a growth of 8.7 per cent. The company's consolidated net profit grew by 2.4 per cent as the IT major reported a profit of 11,074 crore in the preceding June quarter.

TCS shares closed 0.52% lower at 3610.20 per share on BSE on Wednesday. As  on October 6, 72.30 per cent of the company shares are owned by promoter companies. Whereas, 3.46 per cent of shares are held by 358 mutual funds and UTI. A total of 193 insurance firms own 5.91 per cent of share in the IT Behemoth. 1667 foreign portfolio investors (FPI) own 12.5 per cent of shares in the firm. 

Also Read: TCS Q2 Earnings: 5 key highlights from the IT major's September-quarter scorecard

According to market experts, TCS buyback will serve as a strategic announcement by the Indian IT major. The move will bring confidence among investors as share buyback would signal upside in TCS stock in near term. 

“TCS buyback is a strategic announcement by the Indian IT major as it would bring confidence among investors as management is buying shares would signal upside in TCS stocks in near term. However, it is also signaling that company wants to stop sell off after the Q2 results 2023," said , Sandeep Pandey, Director at Basav Capital.

Market experts were hoping for a buyback worth 18,000 crore at the price of 4,300 to 4,500 per share.With this, the Tata group company announced its fifth share buyback in the last six years.

“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," said Avinash Gorakshkar, Head of Research at Profitmart Securities.

3.6 Crore Indians visited in a single day choosing us as India's undisputed platform for General Election Results. Explore the latest updates here!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 11 Oct 2023, 05:20 PM IST
Next Story footLogo
Recommended For You
GENIE RECOMMENDS

Get the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!

Let’s get started