Home >Markets >Stock Markets >TCS shares jump 2% as shareholders approve 16,000 crore buy-back plan
Last month, TCS' board of directors had approved a buyback proposal of up to 5.3 crore equity shares
Last month, TCS' board of directors had approved a buyback proposal of up to 5.3 crore equity shares

TCS shares jump 2% as shareholders approve 16,000 crore buy-back plan

  • In another filing, TCS said it has fixed November 28 as the record date for the buyback.

Shares of Tata Consultancy Services (TCS) jumped as much as 2% to 2,678.6 on BSE today after its shareholders approved up to 16,000 crore share buyback plan. Last month, TCS' board of directors had approved a buyback proposal of up to 5.3 crore equity shares of the company for an aggregate amount of up to 16,000 crore.

"... the members of the company have duly passed the special resolution approving the Buyback," TCS said in a regulatory filing on Wednesday.

The voting, which started on October 20, and ended on November 18, saw 99.57% of the votes being cast in favour of the buyback offer.

There was 100% voting in favour of the proposal by the promoters, 98.11% by public institutional shareholders and 98.43% by other shareholders.

In another filing, TCS said it has fixed November 28 as the record date for the buyback.

"...the company has fixed Saturday, November 28, 2020, as the Record Date for the purpose of determining the entitlement and the names of the equity shareholders who shall be eligible to participate in the Buyback," it said.

TCS CEO and Managing Director Rajesh Gopinathan had earlier said the company is focused on its policy to return capital to shareholders.

Last year, TCS had offered a special dividend and this time it is undertaking a buyback, he had noted.

In October last year, TCS' board had declared a special dividend of 40 per equity share.

In 2018, TCS had undertaken a share buyback of about 16,000 crore.

In 2017 too the company had conducted a similar share purchase exercise.

The company had said its buyback offer was part of its long-term capital allocation policy of returning excess cash to shareholders. (With Agency Inputs)

This story has been published from a wire agency feed without modifications to the text.

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