TCS share price rose as the company's share buyback opened on December 1. The buyback, offering Rs 4,150 a share, contributed to the upward momentum
TCS will buy back a maximum of 4.09 crore equity shares at an offer price of Rs 4,150 apiece, not exceeding Rs 17,000 crore.
This will be the fifth buyback issue by TCS in six years. The company bought Rs 66,000 crore worth of shares in four tranches from shareholders.
Buybacks by TCS are usually followed by similar announcements by other major IT firms, especially Infosys and Wipro. A buyback is one of the most tax efficient ways to reward shareholders, as profits on tendering shares during a buyback are tax-free.