TCS Rs 18,000-cr share buyback dates announced. Details here

IT services major Tata Consultancy Services (TCS) on Monday announced the dates for its mega buyback share sale. The offer for its Rs 18,000 crore share buyback will open on 9 March, and the window will close at 5 pm on 23 March, the company said in a regulatory filing. 

The ratio of buyback will be 1 equity share for every 7 equity shares held on the record date In the reserved category for small shareholders, while the ratio for all other eligible shareholders will be 1 equity share for every 108 equity shares, TCS stated.

While announcing its quarterly results for the October to December quarter of 2022-2022, TCS' board also approved buyback of shares at valued at Rs 18,000 crore being 1.08 per cent of the total paid up equity share capital at 4,500 per equity share.

Share buybacks refer to the repurchasing of shares of stock by the company that issued them. A buyback occurs when the issuing company pays shareholders the market value per share and re-absorbs that portion of its ownership that was previously distributed among public and private investors.

TCS promoters – Tata Sons and Tata Investment Corporation Ltd (TICL) - intend to participate in the IT services major's Rs 18,000 crore buyback offer by tendering shares worth about Rs 12,993.2 crore. 

The previous buyback offer of TCS, worth about Rs 16,000 crore, had opened on December 18, 2020, and closed on January 1, 2021, in which group holding firm Tata Sons had tendered shares worth Rs 9,997.5 crore.

Over 5.33 crore equity shares were bought at that time (offer price was Rs 3,000 apiece) and out of the total, Tata Sons' 3,33,25,118 shares were accepted under the buyback offer.

In 2018, India's largest IT services firm repurchased shares worth up to Rs 16,000 crore at Rs 2,100 apiece. A similar exercise was conducted in 2017 as well.

On Friday, shares of TCS closed 0.54 per cent lower at Rs 3,525.20 apiece on BSE.