In a late night filing TCS on Sunday said its board of directors will consider a buyback of equity shares of the company at its meeting on October 7, 2020.
The company will also provide for Rs. 1218 crore as an exceptional item in its latest results to be declared on October 7 as the a provision in the books for a legal claim in the Epic Systems matter.
On August 20, the US Court of Appeals, 7th Circuit, Chicago, returned a verdict on the appeal filed by TCS, reducing the damages award.
The company has a huge cash of Rs. 51000 crore in its books and it shall be of high interest if the promoters participate in the buyback. And if they participate, the offer shall not be that lucrative.
On Friday, the stock of TCS commanded gains of 1.25% and closed at Rs. 2522.75 per share. Experts see the stock of TCS to hit Rs. 2750 per share before Diwali or even earlier.