Tata Consultancy Services (TCS) Rs 17,000 crore share buyback will start on December 1 and end on December 7, the company said in an exchange filing on November 28.
The IT services firm proposes to buyback up to 4.09 crore equity shares of the face value of Rs 1. The buyback represents 1.12 percent of the total issued and paid-up equity share capital of TCS as on September 30.
The shares are proposed to be bought back at a price of Rs 4,150.
“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,” said TCS in an exchange filing.
Tata Sons Private Limited intends to tender 2,96,03,690 shares and Tata Investment Corporation Limited intends to tender 11,358 shares.
Promoter and Promoter group shareholding will change from 72.3 percent to 72.41 percent post-buyback.
TCS bought back its shares for the first time in 2017, buying back shares worth 16,000 crore in February at an 18 percent premium to the prevailing price. This was followed by two buybacks of Rs 16,000 crore each in June 2018 and October 2020, at an 18 and 10 percent premium. The last was in January 2022. The company bought shares worth Rs 18,000 crore at a premium of 17 percent.
TCS shares were .47 percent up at Rs 3,473.3 at 3.46 pm on the National Stock Exchange.
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