[ad_1]
In 2017 and 2018 too, TCS had done a similar share buyback, making this one the fourth buyback by the company.
Tata Consultancy Services (TCS) on Friday said its board will consider a buyback proposal on January 12. However, it did not disclose any other details of the proposal.
The company’s board is scheduled to meet on January 12 to approve and take on record the financial results for the October-December quarter. TCS will also consider declaration of third interim dividend to the equity shareholders during the board meeting.
The last buyback of the company, worth Rs 16,000 crore, had opened on December 18, 2020, and closed on January 1, 2021.
In 2017 and 2018 too, TCS had done a similar share buyback, making this one the fourth buyback by the company.
Other IT companies such as Infosys and Wipro have also undertaken share buyback to return surplus cash on their books to shareholders. In September last year, Infosys had said it has bought back over 5.58 crore equity shares as part of its about Rs 9,200-crore buyback offer. The process — conducted via open market through Indian stock exchanges — saw shares being bought back in the range of Rs 1,538.10 and Rs 1,750. Wipro had also completed a Rs 9,500-crore buyback in January last year.
“TCS has been doing a combination of buyback and issuance of dividend every year for the last few years to return capital to shareholders,” Mukul Garg, sector analyst at Motilal Oswal, said.
As per Sebi regulations, the maximum limit for a buyback should be 25% or less of the aggregate of paid-up capital and free reserves of the company.
On a consolidated basis, TCS had cash and equivalents of Rs 48,840 crore as of September 2021, and shareholders’ funds of Rs 99,077 crore, Bloomberg data showed.
TCS shares closed 1.26% higher at Rs 3,854.85 a share on the BSE on Friday.
Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.
[ad_2]
Source link
