India's largest IT services firm Tata Consultancy Services (TCS), on October 7, announced a share buyback proposal of Rs 16,000 crore.
The company said: "The board has approved a proposal to buy back up to 5,33,33,333 equity shares, being 1.42 percent of the total paid-up equity share capital, at Rs 3,000 per equity share for an aggregate amount not exceeding Rs 16,000 crore (excluding taxes and related expenses), on a proportionate basis under the tender offer route using the stock exchange mechanism, subject to the approval of the members by means of a special resolution through a postal ballot.
The offer price for the buyback is 9.6 percent higher than the stock's closing at Rs 2,737.40 on BSE on October 7.
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In 2018, TCS had undertaken a share buyback programme worth up to Rs 16,000 crore.
The buyback, at Rs 2,100 per equity share, had entailed up to 7.61 crore shares. In 2017, too, TCS had undertaken a similar share purchase programme.
TCS had announced the mega buyback offer as part of its long-term capital allocation policy of returning excess cash to shareholders.
