India’s largest IT services firm’s share buyback programme with an upper limit of ₹16,000 crore starts today, on December 18 and will conclude on January 1. Last month, TCS shareholders had given a nod to a proposal to buyback up to 5.3 crore shares of the company pegged at ₹3,000 per scrip. Shares of TCS have jumped 2% today to ₹2,884. The share has recorded its all-time high of ₹2,894.
TCS has taken the decision to buyback up to 5.33 crore equity fully paid-up equity shares having a face value of Re 1 each. A buyback floor price has been placed at ₹3,000 per equity share on a proportionate basis through the tender offer process for an aggregate consideration not crossing ₹16,000 crore. January 3 will be the deadline for receipt of completed tender forms and other specified documents, including physical share certificates by the registrar, according to TCS.
The company is aiming to settle bids in the buyback plan on January 12 on stock exchanges. Tata Consultancy Services Ltd (TCS) has set eyes on cloud adoption increasingly leading IT spends across global spends, which is a clear reflection of the source of the IT industry’s growth in the coming years.
The management also elaborated on greater traction from cloud adoption across all industries, in a meeting with analysts last week. Some segments such as manufacturing and financial services still are not accepting this change in comparison with other industries.
