IT services major Tata Consultancy Services (TCS) has announced that members of the company have given their nod for the buyback of shares worth up to Rs 18,000 crore by passing a special resolution through postal ballot.
TCS’ board of directors had on January 12, 2022 declared the buyback of up to 4,00,00,000 fully paid-up equity shares of the face value of Re 1 each at Rs 4,500 per equity share for a sum of Rs 18,000 crore.
In the exchange filing, TCS stated, “The members of the company have approved the buyback by passing a special resolution through postal ballot.”
Wednesday, February 23, 2022, has been decided on as the record date for the purpose of determining the entitlement and the names of the eligible equity shareholders for the buyback.
On Friday, the TCS share had closed down 2.05 per cent at Rs 3,693 on the NSE.
Meanwhile, the IT company has shared that its promoters Tata Sons and Tata Investment Corporation Ltd (TICL) also plan to participate in the buyback offer. Tata Sons has around 266.91 crore shares in TCS and it intends to tender RS 2.88 crore shares for the buyback, while TICL, which holds 10,23,685 shares, offered to tender 11,055 shares.
Earlier Buyback offers by TCS
On December 8, 2020, the company’s buyback offer worth about Rs 16,000 crore had opened and closed on January 1, 2021. During this time, Tata Sons had tendered shares worth Rs 9,997.5 crore.
In 2017 and 2018, TCS initiated two equity share buybacks, both of which were worth Rs 16,000 crore. In 2018, TCS bought back the shares at a price of Rs 2,100 per share, while the amount in 2017 was 2,850 per share.
