TCS share price rose as Rs 18,000-crore buyback offer opens today

Tata Consultancy Services (TCS) share price added 1 percent in the morning session on March 9 as the company's share buyback opens today.

Tata Consultancy Services (TCS) on Monday said its Rs 18,000 crore share buyback offer will open on March 9 and close on March 23.

On February 12, the company announced the share buyback programmed entailing 4 crore shares at Rs 4,500 apiece.

TCS has fixed April 1, 2022 as the last date for settlement of bids on stock exchanges which may even happen earlier, according to a BSE filing.

The company will pay Rs 2,700 crore to the government and the rest will go to paying debt. Tata Sons holds a 72 percent stake in TCS.

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This will be the fourth buyback for the software services major and, in the earlier three instances, Tata Sons was the biggest beneficiary. The last date of settlement of bids on the Stock Exchanges is April 1, 2022, TCS said.

The company had set February 23 as the record date for the purpose of determining the entitlement and the names of the equity shareholders who shall be eligible to participate in the buyback. The buyback ratio will be 1 share for 108 equity shares for general investors.

TCS announced that it will buy back 3,40,00,000 shares from the general category and 60,00,000 shares from the reserved category. This offer is open to all types of shareholders.

The previous Rs 16,000 crore-buyback of TCS had opened on December 18, 2020, and closed on January 1, 2021. Tata Sons had tendered shares worth Rs 9,997.5 crore in that offer.

Over 5.33 crore equity shares were bought at that time (offer price was Rs 3,000 apiece) and out of the total, Tata Sons' 3,33,25,118 shares were accepted under the buyback offer.

In 2018, India's largest IT services firm repurchased shares worth up to Rs 16,000 crore at Rs 2,100 apiece. A similar exercise was conducted in 2017 as well.

Sharing details of the buyback entitlement, TCS said that in the reserved category for small shareholders, the ratio of buyback will be "one equity share for every seven equity shares held on the record date".

The stock was trading at Rs 3,630, up Rs 30.05, or 0.83 percent at 09:57am on the NSE. It has touched an intraday high of Rs 3,643.20 and an intraday low of Rs 3,597.05.

Also Read : TCS hits all-time high, up 2%; market cap nears Rs 15-trillion mark