Transport Corporation of India Ltd. (TCI) saw its shares jump by 15% in early trading on Thursday following the announcement of its first-ever share buyback proposal.
Key Details:
- Board Meeting Date: August 24, 2024
- Purpose: Consideration of the company’s first share buyback
- Record Date: To be announced
- Mechanisms:
- Tender Offer: Shares bought back at a pre-determined price
- Open Market Mechanism: Shares purchased directly from the market
This announcement marks a significant milestone for TCI, as it has never previously conducted a share buyback, issued bonus shares, or split its stock, although it has consistently paid dividends.
Market Reaction:
- Shares Trading: Up 13.90% at ₹1,186.35 as of 9:35 am
The company’s move comes in the wake of the Budget 2024 announcement on July 23, which has prompted a wave of buyback proposals. The new budget regulations stipulate that income from share buybacks will now be taxed in the hands of the shareholder rather than the company, effective October 1.
TCI is now the 17th company to announce or consider a buyback following the recent tax changes.