TCS announces share buyback worth Rs 16,000 crore
The Tata Consultancy Services (TCS) on Wednesday said that it will buyback shares worth Rs 16,000 crore. The decision was taken at the TCS' Board of Directors meeting.
According to a statement issued by the company, the board has approved a proposal to buyback up to 5,33,33,333 equity shares. The offer price for the buyback is 9.6 per cent. This is higher than the company's stock closing at Rs 2,737.40 apiece today.
"The Board has approved a proposal to buy back up to 5,33,33,333 equity shares of TCS, being 1.42 per cent of the total paid-up equity share capital, at Rs 3,000 per equity share for an aggregate amount not exceeding Rs 16,000 crore," the company said in a statement.
This is first buyback programme by the country's largest IT major in the current fiscal and third in the last four years.
The company had in 2018 announced a share buyback programme worth Rs 16,000 crore. The buyback at Rs 2,100 per equity share had entailed up to 7.61 crore shares. In 2017 as well, the firm had undertaken a similar exercise.
Meanwhile, the company on Wednesday reported 4.9 per cent rise in consolidated net profit to Rs 8,433 crore for the September 2020 quarter. The net profit excluded Rs 1,218 crore-provision towards legal claim. Including this number, the net profit was at Rs 7,475 crore, TCS said in a regulatory filing.
The company has also announced an interim dividend of Rs 12 per share.
TCS had registered a net profit of Rs 8,042 crore in the September 2019 quarter.
Its revenue grew 3 per cent year-on-year to Rs 40,135 crore for the just-ended quarter from Rs 38,977 crore in the year-ago period.
