India’s largest software services outsourcer will repurchase 5.33 crore shares or 1.42% of the total paid-up equity, at Rs 3,000 apiece, it said in an exchange filing the aggregate amount will not be more than ₹16,000 crores. TCS proposed to buy back shares at ₹3,000 per share, which is at a premium as compared to today’s closing price of ₹2,737.
TCS shares have rallied since it announced its latest buyback plan on Monday, making it the first Indian company after Reliance Industries Ltd. to cross the Rs 10-lakh-crore market capitalization mark. At the end of trading on Wednesday, TCS’ market value stood at Rs 10.27 lakh crore.
TCS shares today hit a record high of ₹2,769 on expectations of a share buyback plan. TCS shares finally settled 0.8% higher at ₹2,737.TCS on Monday became the second Indian firm after Reliance Industries to attain a market valuation of more than ₹10 lakh crore helped by a rally in its share price.
It’s the third buyback by the company in four years, and the first by an IT firm this fiscal which is proposed to be made from the shareholders of the company on a proportionate basis under the tender offer route using the stock exchange mechanism. “The buyback is subject to the approval of the Members by means of a special resolution through a postal ballot. The public announcement setting out the process, timelines, and other requisite details will be released in due course in accordance with the Buyback Regulations,” it said.
In 2018, the Mumbai-based company had undertaken a share buyback program worth up to ₹16,000 crores. The company had announced the mega buyback offer as part of its long-term capital allocation policy of returning excess cash to shareholders. The buyback, at ₹2,100 per equity share, had entailed up to 7.61 crore shares.