MUMBAI - Tata Consultancy Services (NS:TCS), a leading global IT services, consulting and business solutions organization, has announced the cutoff date for shareholder eligibility in its forthcoming share buyback program. The company disclosed on today that shareholders on record as of November 25 would be eligible to participate in the buyback initiative.
The buyback, unveiled in October, is set to be conducted through the tender offer route and will encompass up to 4.09 crore shares at a price of Rs 4,150 each. This represents approximately 1.12% of TCS's total paid-up equity capital and marks the fifth such exercise by the company. Previous buybacks were completed in January 2022 for Rs 18,000 crore, December 2020 for Rs 16,000 crore, and two additional rounds in 2017 and 2018, each also amounting to Rs 16,000 crore.
Upon the announcement of the buyback details, TCS's shares experienced a positive market reaction, climbing by 2.2% on the National Stock Exchange to close at Rs 3,404.30 on the day of the disclosure. Over the course of 2023, TCS's stock has seen a net gain of just over 4%, indicating steady investor confidence amid broader market movements.
The share buyback program is part of TCS's strategy to return excess cash to its shareholders while potentially improving earnings per share by reducing the number of outstanding shares. Shareholders looking to participate in this corporate action will need to ensure their holdings are recorded by the announced cutoff date to be deemed eligible.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.