On November 28, Tata Consultancy Services (TCS) – India’s biggest software exporter – declared that its share buyback program worth ₹17,000 crore will commence on December 1 and terminate on December 7. As part of its share buyback program, Tata Consultancy Services (TCS) plans to repurchase 4.09 crore shares, which amounts to 1.12% of the total equity share capital, at a price of ₹4,150 apiece.
Tata Consultancy Services (TCS) has stated in a regulatory filing that it does not expect the share buyback program to have any significant impact on the company’s profitability or earnings, except for the reduction in the amount available for investment. The company could have otherwise utilized the funds for generating investment income.
Tata Sons Private Limited and Tata Investment Corporation Limited intend to participate in Tata Consultancy Services’ (TCS) share buyback program. TCS had set November 25 as the record date for its buyback, which is the fifth in six years. Prashanth Tapse of Mehta Equities suggested short-term trades to generate returns based on the assumed entitlement ratio. TCS shares were trading 0.43% higher at ₹3,472.05 apiece on the NSE during Tuesday’s late afternoon trade.
