TCS board approves Rs 16,000 cr share buyback

Tata Consultancy Services' (TCS') board of directors has approved a proposal to buyback up to 5,61,40,351 equity shares of the company for an aggregate amount not exceeding Rs 16,000 crore, the company informed BSE in a filing.

The buyback size works out to 2.85 per cent of the company's total paid up equity share capital, at Rs 2,850 per equity share.

"The buyback is proposed to be made from the shareholders of the company on a proportionate basis under the tender offer route using the stock exchange mechanism in accordance with the provisions contained in the Sebi (Buy Back of Securities) Regulations, 1998, and the Companies Act, 2013, and rules made thereunder," the filing said.

Further, the buyback size does not include any expenses incurred or to be incurred for the buyback like filing fees, advisory fees, public announcement publication expenses, printing and dispatch expenses, and other incidental and related expenses.

The company also said that the buyback is subject to approval of the members by means of a special resolution through a postal ballot. The public announcement setting out the process, timelines and other requisite details will be released in due course in accordance with the buyback regulations.

TCS' scrip closed the day 4.08 per cent higher at Rs 2,506.50.

The buyback would be the company's first since its listing in 2004.

Investors have been expecting Indian IT firms to offer buybacks or dividends for a long time as the companies sit over billions in cash.

TATA Consultancy Services ( TCS )