Tata Consultancy Services (TCS), the largest IT services provider in India, has set 25 November as the record date to ascertain whether shareholders are eligible to take part in its Rs 17,000 crore share buyback plan.
“The company has fixed Saturday, November 25, 2023, 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", Tata Consultancy Services said in a regulatory filing.
A share buyback refers to when a company repurchases its own shares in order to decrease the total number of shares available on the market and consequently boost the value of the remaining shares.
The IT company plans to repurchase up to 40.96 million fully paid-up equity shares at a face value of Rs 4,150 per share, for a maximum total value of Rs 17,000 crore. The buyback strategy was revealed on October 11.
At Rs 4,150 per equity share, the Tata group company's fifth share repurchase in the previous six years will account for 1.12 per cent of the entire paid-up equity share capital.
TCS announced a Rs 11,432 crore net profit for the Q2 FY24 quarter in addition to its buyback strategy. The September quarter of FY 23–24 saw an 8.7 per cent YoY increase in net profit for the IT company. Compared to the June quarter before, when it made Rs 11,074 crore, its net profit climbed by 2.4 per cent quarter-on-quarter.
TCS shares were trading at Rs 3,523 at 12 pm, up by Rs 118.70 and 3.49 per cent on the National Stock Exchange (NSE).