TCS fixes November 25 as record date for buyback; details here

TCS buyback: Indian IT major Tata Consultancy Services (TCS) fixed the record date for its ₹17,000 crore share buyback plan on 25 November, the company said in its stock exchange filing on Wednesday.

The IT major, on October 11, had announced to buyback up to 4,09,63,855 fully paid-up equity shares of face value of ₹1 each at ₹4,150 per equity share for an amount equivalent to ₹17,000 crore.

The company shares had closed 2.03% higher at ₹3399 per share on BSE on Wednesday.

Also Read: NITES alleges forced employee transfers at TCS, files complaint

“Pursuant to Regulation 42 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Regulation 9(i) of the Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018, as amended, the Company has fixed Saturday, November 25, 2023, as the Record Date for the purpose of determining the entitlement and the names of the equity shareholders who shall be eligible to participate in the Buyback,” TCS said in its stock filing on Wednesday.

Also Read: Market capitalisation of top 10 companies decreases: TCS, Infosys see most erosion

The fifth share buyback of the Tata group company in the last six years, will represent 1.12% of the total paid-up equity share capital, at ₹4,150 per equity share.

Along with the announcement of its buyback plan, TCS had reported a net profit of ₹11,432 crore in the Q2 FY24 quarter. The IT firm had reported an 8.7 per cent YoY rise in its net profit in the September quarter of FY 23-24. Its net profit increased by 2.4 per cent QoQ from ₹11,074 crore in the preceding June quarter.

Also Read: Diwali 2023 Stock Picks: Religare Broking lists TCS, Axis Bank among 5 other top picks for Samvat 2080

Markets experts believe that TCS buyback will prove to be a strategic announcement for the Indian IT sector. The announcement will boost investors confidence and would result in an improvement in TCS stock performance. However, the company’s stock value has declined around 3.54% in past one month.

“TCS buyback is a strategic announcement by the Indian IT major as it would bring confidence among investors as management is buying shares would signal upside in TCS stocks in near term. However, it is also signaling that company wants to stop sell off after the Q2 results 2023,” said , Sandeep Pandey, Director at Basav Capital.