Tata Consultancy Services (TCS), India's leading IT services firm, announced on Tuesday, November 28, that its share buyback initiative worth Rs 17,000 crore is set to commence on December 1 and conclude on December 7.
The IT services company plans to repurchase a maximum of 4.09 crore equity shares, amounting to 1.12 per cent of TCS's total issued and paid-up equity share capital as of September 30.
The IT services provider said in its regulatory filing, “The company believes that the buyback is not likely to cause any material impact on the profitability or earnings of the company except to the extent of reduction in the amount available for investment, which the company could have otherwise deployed towards generating investment income.”
The entitlement ratio for small shareholders is set at one equity share for every six equity shares held on the record date, whereas other eligible shareholders are entitled to two shares for every 209 shares owned.
Expressing interest in the buyback, Tata Sons and Tata Investment Corporation, both holding companies of the Tata Group, may collectively tender up to a maximum of 2,96,15,048 equity shares, contributing to the total buyback size of 4,09,63,855 shares.
In 2017, TCS initiated its share buyback program, acquiring shares valued at 16,000 crore in February. Subsequently, two more buybacks took place in June 2018 and October 2020, each amounting to Rs 16,000 crore, respectively. The most recent buyback occurred in January 2022, involving shares worth Rs 18,000 crore.
