The Tata Consultancy Services (TCS) board is meeting on Friday to consider a proposal to buy back shares, the company said in a stock exchange filing.
Sources told TOI it might be to the extent of Rs 10,000 crore. TCS has said previously that it will pay out 100% of its free cash flows to shareholders. In the 2017-18 financial year, TCS made a 118% payout.
An email sent to TCS did not elicit a response till the time of going to press. Last year, TCS announced a Rs 16,000-crore mega share buyback at Rs 2,850 apiece that closed on May 31.
Rival Cognizant Technology Solutions plans to return $3.4 billion to its shareholders over the next two years through share repurchase and dividends. CTS will buy back $1.2 billion shares during 2017 and 2018. Infosys did a $2-billion share buyback, and recently identified Rs 10,400 crore ($1.6 billion) to be paid out to shareholders for the financial year 2019.
Increasingly, companies are looking at tax-efficient ways of returning cash to shareholders and a buyback is seen to be by far the most optimal way.
Sources told TOI it might be to the extent of Rs 10,000 crore. TCS has said previously that it will pay out 100% of its free cash flows to shareholders. In the 2017-18 financial year, TCS made a 118% payout.
An email sent to TCS did not elicit a response till the time of going to press. Last year, TCS announced a Rs 16,000-crore mega share buyback at Rs 2,850 apiece that closed on May 31.
Rival Cognizant Technology Solutions plans to return $3.4 billion to its shareholders over the next two years through share repurchase and dividends. CTS will buy back $1.2 billion shares during 2017 and 2018. Infosys did a $2-billion share buyback, and recently identified Rs 10,400 crore ($1.6 billion) to be paid out to shareholders for the financial year 2019.
Increasingly, companies are looking at tax-efficient ways of returning cash to shareholders and a buyback is seen to be by far the most optimal way.