TCS’ biggest share buyback program to start on March 9

Tata Consultancy Services’ biggest Rs. 18000 crore share buyback program will start on March 9 and close on March 23. It has fixed April 1, 2022, as the last date for settlement of bids.

The TCS share buyback program is the fourth and biggest buyback of the company in the past five years.

The company has previously announced the share buyback program for four crore shares at Rs. 4500 per share, totaling Rs. 18000 crore.

The buyback ratio will be “1 share for every seven equity shares held on the record date” in the reserved category for small investors. On the other hand, in the general classification for all other eligible shareholders, the buyback ratio will be 1 for every 108 equity shares.

The company’s promoters, Tata Sons and Tata Investment Corporation Ltd (TICL) intend to participate in the buyback program by tendering shares worth about Rs. 12993.2 crore, according to a company document filed earlier. At Rs. 4500 per share, the two entities will rake in about Rs. 12993.2 crore.

Previously, TCS has opened Rs. 16000 crore buyback on December 18, 2020, and closed on January 1, 2021. At that share buyback program, Tata Sons have tendered shares worth Rs. 9997.5 crore.

In the 2020 TCS share buyback program, the company bought more than 5.33 crore equity shares at the offer price of Rs. 3000 per share, and out of the total, Tata Sons’ 3.33 crore shares were accepted under the program.

In 2018, TCS had repurchased shares worth up to Rs. 16000 crore at Rs. 2100 per share. The same buyback program was also conducted in 2017.