TCS announces share buyback dates, fixes retail entitlement ratio at 17%; Details here
TCS has confirmed the dates for its share buyback program, which will begin on December 1 and end on December 7.
Money Poise
The share buyback program initiated by Tata Consultancy Services (TCS) is scheduled to commence on December 1 and conclude on December 7. In exchange for their shares, investors may transfer them to the company for a fee of 4,150 ₹ each.
As of the record date of November 25, small shareholders, defined as individuals with investments amounting to less than ₹2 lakh, have been allocated an entitlement ratio of 1 equity share for every 6 shares held. This proportion is equivalent to roughly 17%.
The entitlement ratio for remaining qualifying shareholders is established at two shares for each 209 shares held.
A 20% premium is placed on the buyback price of 4,150 over the closing price of 3,457.60 on the BSE on Friday. At 3,478.80, the stock price increased by 0.6% over the course of the day.
TCS foresees that the repurchase will lead to an increase in its standalone EPS from ₹58.52 to ₹59.18, as well as a net worth growth of 62.56% from 49.89%.
Should every shareholder fully exercise their buyback entitlement, the promoters' aggregate shareholding will increase marginally from the present 72.3% to 72.41%.
Tata Investment Corporation and Tata Sons, two holding entities comprising the Tata Group, have declared their intent to participate in the buyback. They may collectively tender a maximum of 2,96,15,048 equity shares. The buyback in its entirety comprises 4,09,63,855 shares.
The repurchasing initiative is expected to be funded by internal accruals and/or extant surplus funds at the information technology behemoth.
"This is in furtherance of our letter no. TCS/BM/162/SE/2023-24 dated October 11, 2023 and letter no. TCS/BB/SE/201/2023-24 dated November 15, 2023, informing the decision of the board of directors and the members of the Company, respectively, to buyback up to 4,09,63,855 (Four crore nine lakh sixty three thousand eight hundred and fifty five) fully paid-up equity shares of face value of Re 1 each at ₹4,150 (Rupees four thousand one hundred and fifty only) per equity share for an aggregate amount not exceeding ₹17,000 crore (Rupees seventeen thousand crore only) excluding transaction costs, applicable taxes and other incidental and related expenses (“Buyback" ),
