Watch: Everything you wanted to know about a share buyback
A trend is emerging among IT companies to buy back shares amid rising concerns that they are struggling to put excess cash to investment use in a growth-challenged environment.
Earlier this week, the Tata Consultancy Services board approved a Rs 16,000 crore share buyback, the highest ever in the country.
On Wednesday, an official familiar with the development told Moneycontrol that the company was open to the idea of a share buyback and was considering it.
But what exactly is a share buyback. Here’s a quick primer to get you up to speed on the basics: