TCS Share Buyback Consideration On October 7: Analysts' Expectations

As a surprise move, TCS is yet to consider ahead of its Q2 results for FY21 on October 7, 2020. Here are few expectations on the TCS buyback as per analysts:

1. Buyback size: Considering the pevious buybacks, the size of the buyback shall be between Rs. 16000 crore to Rs. 21000 crore. Our estimate of maximum outlay of buyback through the board-approved route is Rs 8,900 crore ( is 0.9 per cent of the current market cap) or Rs 22,000 crore (2.2 per cent of current market cap) through the shareholders'-approval route," said Kotak Institutional Equities.

2. Tender route: This is the possibility as promoters will most likely participate.

3. Promoters' participation: This will most likely be there as promoters would also have to aggregate cash for buying Shapoorji Palonji Group.

4. Boost shareholder's confidence: With a cash strong balance sheet and buyback consideration, the shareholders will get a boost amid such an environment.

"We certainly see that as positive and reassuring because if we look at the context of what really happened in the macro environment in the past across many industries," said Apurva Prasad of HDFC Securities.

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