November 25 is the record date that TCS has chosen for its Rs 17,000-crore share buyback

16 Nov 2023 , 12:01 PM

The largest provider of IT services in India, TCS, has designated November 25 as the record date for its Rs 17,000-crore share buyback plan. This date is used to ascertain which shareholders are eligible to take part in the process.

‘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,’ stated Tata Consultancy Services in a regulatory filing.

For a maximum sum of Rs 17,000 crore, the IT company will buy back up to 40.96 million fully paid-up equity shares, each having a face value of Rs 1. Each share will be purchased for Rs 4,150. On October 11, the buyback plan was made public.

The stock has dropped 6% after the news. TCS closed on November 15 at Rs 3,408.6 a share on the National Stock Exchange, up 2.31% from the previous trading day. The buyback’s price represents a 21.7% gain from the closing price.

TCS has repurchased shares five times in the last six years, rewarding investors with rising cash reserves. In the years 2017, 2018, 2020, and 2022, TCS repurchased its stock. The massive IT company, valued at more than Rs 13 lakh crore, has repurchased shares totaling Rs 66,000 crore thus far.

For the first time since 2017, TCS repurchased shares in February, paying an 18% premium over the going rate for shares valued at 16,000 crore. Two buybacks of Rs 16,000 crore each, in June 2018 and October 2020, at a premium of 18 and 10%, came after this. January 2022 marked the most recent. The corporation paid a premium of 17% for shares valued at Rs 18,000 crore.

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