TCS to buyback shares at 13.7% premium

Tata Consultancy Services (TCS) has approved buyback of up to 5.6 crore equity shares at a price of Rs 2850. The company’s aggregate amount for the buyback will not exceed Rs 16,000 crore. TCS has set its buyback price at a 13.7 per cent premium to the current market price.

TCS’ buyback offer constitutes 2.85 percent of total paid-up equity share capital. The company’s buyback offer is proposed to be made to the shareholders on a proportionate basis. The promoters of TCS currently hold 73.33 per cent stake in the company.

BSE IT index rose 1.62 per cent on Monday. The share price of TCS also increased 4.08 per cent and closed at Rs 2506.6 on an intraday basis.

Recently, Cognizant also announced a USD 3.4 billion (Rs 22758 crore) buyback plan. Going forward, Infosys and Wipro are likely to be under pressure to come out with their own buyback plans.