The Board of Directors of Tata Consultancy Services will consider a proposal for buyback of equity shares of the company at its meeting to be held on October 7.
This was disclosed by the company in a stock exchange filing without giving any further details.
If approved, this would be the third buyback from the IT major.
Earlier, in 2018 and 2017, the company had bought back shares worth ₹16,000 crore each with 100 per cent acceptance ratio.
The company had fixed the buyback price at ₹2,100 in 2018 and at ₹2,850 a share in 2017. Both the offers were through tender route on a proportionate basis.
The stock on Friday closed at ₹2,540 on the NSE.
Separately, the company informed that in the legal dispute related to EPIC Systems Corporation, TCS would be providing ₹1,218 crore as exceptional item in the financial results for the three and six months ended September 30, 2020, to be announced on October 7, 2020.
On August 20, 2020, the US Court of Appeals, 7th Circuit, Chicago, returned a verdict on the appeal filed by TCS, reducing the award of damages. The court held that the punitive damages award of $280 million is constitutionally excessive, vacated the punitive damages award and directed the trial court to reassess the punitive damages. The court upheld the compensatory damages award of $140 million.
“TCS is legally advised that it has the correct and the strongest possible arguments in its favour and the order and reduced damages are not supported by facts presented during the trial. In September 2020, TCS has filed a petition seeking re-hearing on both compensatory and punitive damages,” TCS said in a statement.
EPIC has also filed a petition seeking re-hearing on the decision of the Appeals Court invalidating the award of punitive damages exceeding the amount of compensatory damages.
The provision in the books for the legal claim is being made as a matter of prudence, TCS said.