New Delhi: Tata Consultancy Services (TCS) on Wednesday announced a mega-Rs 16,000 crore buyback plan at Rs 3,000 per equity share. In 2017 and 2018 too, TCS had undertaken buyback offers of similar sizes.
“The Board of Directors of the company at its meeting held today has approved a proposal to buyback up to 5,33,33,333 equity shares of the company for an aggregate amount not exceeding Rs 16,000 crore, being 1.42 per cent of the total paid-up equity share capital at Rs 3,000 per equity share,” TCS said in a regulatory filing on Wednesday.
The buyback will be conducted via a tender offer route using the stock exchange mechanism, it added.
The buyback offer is subject to the approval of the members by means of a special resolution through a postal ballot, the filing said.
A public announcement setting out the process, timelines and other requisite details will be released in due course following the buyback regulations, it added.
Meanwhile, smaller rival Wipro has also announced that its Board will consider a buyback plan on October 13. However, no other details were provided.
The TCS’ offer price of Rs 3,000 per equity share is 9.6 per cent higher than the stock’s closing at Rs 2,737.40 on BSE on Wednesday.