Rs 17,000 Crore Buyback Offer: Steps To Apply For TCS Buyback At Zerodha, And Broking Charges - EXPLAINED!

After a weekend holiday, tendering of shares in one of the mega buyback offers worth Rs 17,000 crore by tech giant Tata Consultancy Services (TCS) will continue from December 4th till 7th. Leading stock brokerage Zerodha has notified its traders of the process of applying for the TCS buyback and its charges. There are only two categories for traders to tender shares in TCS buyback namely retail and general.

The buyback opened on December 1st and will close on December 7th. Under the Rs 17,000 crore buyback, TCS is offering 4.09 crore equity shares at a face value of Re 1 each. The size of the buyback is up to Rs 17,000 crore. For the buyback, TCS has fixed a floor price of Rs 4,150 per piece, which is at over 15% discount from the current market price.

On the first day of the buyback (December 1), on BSE, TCS shares ended at Rs 3,509.60 apiece, up by 16.20 or 0.5% with a market cap of Rs 12,84,180.67 crore.

The ratio for buyback for small shareholders is fixed at 1 equity share for every 6 equity shares held as of the record date, November 25th. For other general category shareholders, the buyback ratio comprises 2 equity shares for every 209 equity shares held as of the record date.

According to the notification by Zerodha on its website, a trader will be eligible for buyback only if the shares are in your holdings as of November 25, 2023. This means you should have bought the stock on November 23, 2023 or earlier.

TCS fixed November 25 as the record date to determine eligible shareholders for the buyback.

Further, Zerodha's note said, "Your TCS holdings will be reduced by the number of shares tendered for the buyback until December 14, 2023, and will not be visible on Kite and Console. You will see NO BIDS in the Bid qty column on the Console. Do not place new orders if you have successfully placed buyback orders. A notification is sent to the registered e-mail address once your buyback orders are placed successfully."

Here's how to tender shares in TCS buyback via Zerodha:

You can place orders till the offer closure date, i.e. 07-12-2023 at 1:00 PM. You can tender shares by visiting console.zerodha.com/portfolio/corporate-action-order-window, as per the website.

Follow the below-mentioned steps to apply:

Step 1: Visit console.zerodha.com.

Step 2: Tap on the context menu and then Portfolio.

Step 3: Tap on Corporate Actions.

Step 4: Under the Buybacks tab, tap on TCS and then Place Order.

Step 5: Enter the quantity and tap on Submit.

If you have already placed an order, the order received status will be displayed on the order window, it said.

Zerodha TCS Buyback Charges: It also needs to be noted that there will be charges of Rs 20+GST per order which are non-refundable irrespective of whether the order is accepted, rejected or failed. If multiple orders are placed, charges will be levied accordingly. Statutory charges are also applicable, as per Zerodha.