The ongoing share buyback by Tata Consultancy Services has seen record participation from investors surpassing the previous record made in 2020.
The company’s buyback has seen participation from 223,875 investors as of 3:35 pm on March 11, which is only the third day of the buyback window. Previously, the highest participation in a buyback by the information technology major was of 195,470 investors in 2020.
The buyback window will close on March 23. TCS has offered to buy back up to 40 million shares of the company at a floor price of Rs 4,500 per share.
The participation has likely been led by retail investors and mutual funds. So far, retail investors have tendered 8.5 million shares out of the 15.2 million shares offered to the company by investors at the end of the third day of the buyback window, according to the data on BSE and National Stock Exchange.
Mutual funds were a distant second as they tendered around 5.1 million shares of the IT giant in the three days so far.
Over 1.5 million individual investors hold around 3.6 percent stake in the IT services company, while 40 mutual funds own nearly 3.3 percent stake, as per the company’s latest shareholding data.
Interestingly, participation from foreign institutional investors has been subdued as they have tendered merely 1.2 million shares of the company so far. The low participation from foreign investors so far, stands in contrast to the selling in IT stocks from the cohort in the secondary market in the past few months.
Foreign portfolio investors have net sold IT stocks worth more than Rs 27,000 crore in January and February driven by large sell-off in global technology stocks as prospects of higher interest rates in the US made the sector’s expensive valuations unsustainable.
That said, shares of TCS have fallen merely 3.7 percent in 2022 so far as against over 4 percent decline in the Nifty 50 index.
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