Tata Consultancy Services (TCS) is one of the biggest IT firms in India. It is an investor friendly company and shareholders have reaped the benefits many times. Following the trend, the board of Tata Consultancy Services has recommended an Rs 18,000-crore share buyback. It is the fourth and biggest such exercise by India’s largest IT services firm in the past five years. The buyback price of TCS shares is Rs. 4,500 apiece.
The details of buyback as per the meeting held by the Board of Directors include “The Board of Directors of the company at its meeting held today has approved a proposal to buyback up to 4 crore equity shares of the company for an aggregate amount not exceeding Rs 18,000 crore, being 1.08% of the total paid-up equity share capital, at Rs 4,500 per equity share,” TCS said in a BSE filing.”
The buyback process involves a company repurchasing its shares from the current shareholders by offering a higher price than the prevailing stock price. The buyback process reduces the number of outstanding shares in the market.
TCS Buyback Details 2022 Dates, TCS Buyback Price & Financial Performance
|
Buyback Type: |
Tender Offer |
|
Buyback Offer Amount: |
Rs. 18,000 cr |
|
Date of Board Meeting approving the proposal: |
Jan 12 2022 |
|
Date of Public Announcement: |
Jan 12 2022 |
|
Buyback Number of Shares: |
4,00,00,000 |
|
Price Type: |
Tender offer |
|
FV: |
1 |
|
Buyback Price: |
Rs. 4500 Per Equity Share |
Details of Financial Performance
|
Particulars (in Cr) |
Mar 2017 |
Mar 2018 |
Mar 2019 |
Mar 2020 |
Mar 2021 |
|
Sales |
117,966 |
123,104 |
146,463 |
156,949 |
164,177 |
|
Expenses |
85,655 |
90,588 |
106,957 |
114,840 |
117,631 |
|
Operating Profit |
32,311 |
32,516 |
39,506 |
42,109 |
46,546 |
|
OPM % |
27% |
26% |
27% |
27% |
28% |
|
Other Income |
4,221 |
3,642 |
4,311 |
4,592 |
1,916 |
|
Interest |
32 |
52 |
198 |
924 |
637 |
|
Depreciation |
1,987 |
2,014 |
2,056 |
3,529 |
4,065 |
|
Profit before tax |
34,513 |
34,092 |
41,563 |
42,248 |
43,760 |
|
Tax % |
24% |
24% |
24% |
23% |
26% |
|
Net Profit |
26,289 |
25,826 |
31,472 |
32,340 |
32,430 |
|
EPS in Rs |
66.71 |
67.46 |
83.87 |
86.19 |
87.67 |
How to Participate in TCS Buyback?
The retail investors can participate in TCS buyback by holding shares of the company in their Demat account or physical form on the record date. TCS is yet to announce the record date for the buyback process. When the buyback process opens, you can participate by offering your shares in the process. The payment for the shares accepted by the company will be credited to your bank account. The unaccepted shares will get credited to your demat account.
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