TCS approves Rs 16,000-crore buyback at Rs 2,100 a share

New Delhi, June 15 

India’s largest IT firm Tata Consultancy Services (TCS) on Friday said its Board has approved share buyback of up to Rs 16,000 crore.

The buyback, at Rs 2,100 per equity share, entails up to 7.61 crore shares or 1.99% of the total paid- up equity share capital.

“...Board of Directors of the company at its meeting held on Friday...has approved a proposal to buy back up to 7.61 crore equity shares...of the company for an aggregate amount not exceeding Rs 16,000 crore...,” TCS said in a regulatory filing.

TCS promoters hold 71.92% stake in the company. The stock traded at Rs 1,841, up 3% in the afternoon trade on Friday when the news broke, which lifted the company’s market cap back to Rs 7 lakh crore. 

“The buyback is proposed to be made from the shareholders on a proportionate basis under the tender offer route using the stock exchange mechanism in accordance with the provisions contained in the SEBI (Buy Back of Securities) Regulations, 1998,” the company said.

The announcement follows a similar share purchase done by the company last year. Last year also, TCS had undertaken Rs 16,000-crore mega buyback offer, entailing 5.61 crore shares at a price of Rs 2,850 per scrip. — PTI

First Indian company to have m-cap of over Rs 7 lakh crore

• TCS on Friday became the first Indian company to breach market valuation of over Rs 7 lakh crore 
• Shares jumped 2.75% to close at Rs 1,841.45 on the BSE. During the day, it surged 3.16% to Rs 1,849
• Market valuation soared by Rs 18,837 crore to Rs 7,05,013 crore ($103 billion) at the close of trade on Friday