TCS Announces Rs. 18,000 Cr. Buyback At Rs. 4500, Interim Dividend Of Rs. 7/ Share

The IT major Tata Consultancy Services during its quarterly announcements today alongside informed on the buyback worth Rs. 18000 crore (this buyback being higher than the previous 3 buybacks announced since 2017). "We wish to inform you that the Board of Directors of the Company at its meeting held today has approved a proposal to buyback up to 4,00,00,000 Equity Shares of the Company for an aggregate amount not exceeding ₹18,000 crore being 1.08% of the total paid-up equity share capital, at ₹4,500 per Equity Share", said the company's filing to the exchanges.

TCS Announces Rs. 18,000 Cr. Buyback At Rs. 4500, Interim Dividend Of Rs. 7

"The buyback is proposed to be made from the shareholders of the Company on a proportionate basis under the tender offer route using the stock exchange mechanism in accordance with the provisions contained in the SEBI (Buy-Back of Securities) Regulations, 2018 (hereinafter referred to as the "Buyback Regulations") and the Companies Act, 2013 and rules made thereunder".

This is a 16.58% premium to Wednesday's closing price. In the last buyback, the company repurchased its shares at a price of Rs. 3000 per share.

Earlier the company in 2017, 2018 and 2020 repurchased shares worth Rs. 16,000 crore each.

Also the company has announced an interim dividend of Rs. 7 per share. The record date for this dividend has been kept as January 20, 2022, while the dividend payment date is February 7, 2022.

GoodReturns.in