New Delhi: Tata Consultancy Services The promoters – Tata Sons and Tata Investment Corporation Ltd (TICL) – intend to participate in the IT services major’s Rs 18,000 crore buyback offer by tendering shares worth around Rs 12,993.2 crore.
On Wednesday, the TCS board approved buyback offers of up to Rs 18,000 crore, with 4 crore shares at Rs 4,500.
As per the postal ballot notice by the company, Tata Sons and TICL intend to participate in the buyback offer.
Tata Sons, which holds around 266.91 crore shares, intends to tender 2.88 crore shares, while TICL (which holds 10,23,685 shares) intends to tender 11,055 shares.
At Rs 4,500, both the entities earned around Rs 12,993.2 crore. TCS is seeking shareholders’ approval through a special resolution for buyback of equity shares of the company.
The period of remote e-voting will start from January 14, 2022 and will end on February 12, 2022. The results of postal ballot will be declared on February 15, 2022.
The previous buyback of Tata Consultancy Services (TCS) worth around Rs 16,000 crore opened on December 18, 2020 and closed on January 1, 2021, with the group’s holding firm Tata Sons tendering shares worth Rs 9,997.5 crore.
At that time more than 5.33 crore equity shares were bought (offer price was Rs 3,000) and out of the total, 3,33,25,118 shares of Tata Sons were accepted under buyback offer.
In 2018, India’s largest IT services firm repurchased shares worth up to Rs 16,000 crore at Rs 2,100. A similar exercise was conducted in 2017 as well.
According to the detailed postal ballot in Thursday’s stock exchange filing, the promoter companies held 72.19 per cent stake in TCS as of January 12, 2022.
It added that the offer price of Rs 4,500 per share represents a premium of 18.21 per cent and 18.19 per cent, respectively, over the closing price of the equity share on BSE and NSE as on January 6, 2022.
Postal Ballot stated that the current buyback is “in line with the company’s shareholder-friendly capital allocation practices of returning excess cash to shareholders, thereby increasing shareholder value over the long term, and improving the “return on equity”.
The buyback, subject to regulatory consent and approval, if any, is proposed to be completed within 12 months from the date of passing of the special resolution by the shareholders.
On Wednesday, the TCS board approved buyback offers of up to Rs 18,000 crore, with 4 crore shares at Rs 4,500.
As per the postal ballot notice by the company, Tata Sons and TICL intend to participate in the buyback offer.
Tata Sons, which holds around 266.91 crore shares, intends to tender 2.88 crore shares, while TICL (which holds 10,23,685 shares) intends to tender 11,055 shares.
At Rs 4,500, both the entities earned around Rs 12,993.2 crore. TCS is seeking shareholders’ approval through a special resolution for buyback of equity shares of the company.
The period of remote e-voting will start from January 14, 2022 and will end on February 12, 2022. The results of postal ballot will be declared on February 15, 2022.
The previous buyback of Tata Consultancy Services (TCS) worth around Rs 16,000 crore opened on December 18, 2020 and closed on January 1, 2021, with the group’s holding firm Tata Sons tendering shares worth Rs 9,997.5 crore.
At that time more than 5.33 crore equity shares were bought (offer price was Rs 3,000) and out of the total, 3,33,25,118 shares of Tata Sons were accepted under buyback offer.
In 2018, India’s largest IT services firm repurchased shares worth up to Rs 16,000 crore at Rs 2,100. A similar exercise was conducted in 2017 as well.
According to the detailed postal ballot in Thursday’s stock exchange filing, the promoter companies held 72.19 per cent stake in TCS as of January 12, 2022.
It added that the offer price of Rs 4,500 per share represents a premium of 18.21 per cent and 18.19 per cent, respectively, over the closing price of the equity share on BSE and NSE as on January 6, 2022.
Postal Ballot stated that the current buyback is “in line with the company’s shareholder-friendly capital allocation practices of returning excess cash to shareholders, thereby increasing shareholder value over the long term, and improving the “return on equity”.
The buyback, subject to regulatory consent and approval, if any, is proposed to be completed within 12 months from the date of passing of the special resolution by the shareholders.
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