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TCS Shares Hit 52-Week High As Its Rs 16,000 Crore Buyback Opens

By Staff
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On Friday, shares of Tata Consultancy Services (TCS) rose 2% to hit a 52-week high of Rs 2,894 apiece as company's Rs 16,000 crore share buyback offer opened for investors.

The IT giant has decided to buy back up to 5,33,33,333 equity shares and fixed the floor price for this offer at Rs 3,000 per share. The share buyback offer is scheduled to close on 1 January 2021.

TCS Shares Hit 52-Week High As Its Rs 16,000 Crore Buyback Opens
 

It is TCS' third share buyback after from the company after August 2018 and May 2017.

Shareholders have been recommended to tender their shares in the buyback as analysts say that it is unlikely that TCS, like many IT stocks, has risen quite a lot from the March lows, discounting opportunities for further upside.

"TCS shareholders can offer shares in buyback as there is a spread between the current price and the buyback price. This is despite the fact that all of the offered shares may not be accepted. For investors who are bullish on TCS for the long-term, the post buyback price fall (though not expected to be large) will offer an opportunity to buy back an equivalent of the accepted shares from the market. For shareholders who are not so bullish, the shares may be sold in the market," Deepak Jasani, head of retail research at HDFC Securities was quoted saying in a Business Standard report.

TCS has climbed nearly 90% from its March low of Rs 1,506.05. On Friday, the surge in share value pushed the market cap of the Tata group company above Rs 10.8 lakh crore.

Read more about: tcs tata consultancy services
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