TCS announces share buyback dates, fixes retail entitlement ratio at 17%; Details here
Tata Consultancy Services (TCS) has set the dates for share buyback programme, opening on December 1 and will close on December 7. Investors have the option to submit their shares to the company at a rate of ₹4,150 per share. Small shareholders, categorized as those with investments totaling less than ₹2 lakh, have been assigned an entitlement ratio of 1 equity share for every 6 shares held as of the record date, which is November 25.
This ratio corresponds to approximately 17%. For other qualifying shareholders, the entitlement ratio is set at 2 shares for every 209 shares held. The buyback price of ₹4,150 represents a 20% premium over Friday's closing price of ₹3,457.60 on the BSE.
Throughout the day, the stock price traded 0.6% higher at ₹3,478.80. TCS anticipates that the buyback will result in an uptick in its EPS from ₹58.52 to ₹59.18 on a standalone basis, and the net worth is expected to increase from 49.89% to 62.56%. If all shareholders exercise their buyback entitlement to the full extent, the promoters' combined shareholding will rise to 72.41%, up slightly from the current 72.3%.
Tata Sons and Tata Investment Corporation, two holding companies within the Tata Group, have indicated their intention to take part in the buyback, potentially tendering a combined maximum of 2,96,15,048 equity shares. The overall buyback encompasses 4,09,63,855 shares. The information technology giant plans to fund the buyback through existing surplus funds and/or internal accruals.
"This is in furtherance of our letter no. TCS/BM/162/SE/2023-24 dated October 11, 2023 and letter no. TCS/BB/SE/201/2023-24 dated November 15, 2023, informing the decision of the board of directors and the members of the Company, respectively, to
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