TCS announces dates for share buybacks worth Rs 18,000 crore. see details here

The buyback ratio will be “1 equity share for every 7 equity shares held on the record date”, said TCS, in the category reserved for small shareholders.

In the normal category for all other eligible shareholders, the buyback ratio will be “1 equity share for every 108 equity shares held on the record date”.

Earlier, the promoters of Tata Consultancy Services (TCS) – Tata Sons and Tata Investment Corporation Ltd. intend to participate in the IT services major. According to a regulatory filing, the buyback offer of Rs 18,000 crore by tendering around 2.88 crore shares.

On Wednesday, the TCS board had approved up to one 18000 crore buyback offer consisting of 4 crore shares 4,500 per.

As per the postal ballot notice by 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.

According to the document, Tata Sons and Tata Investment Corporation Ltd – the promoter companies of TCS – also intend to participate in the buyback offer.

Tata Sons, which holds about 266.91 crore shares, intends to tender 2.88 crore shares, while Tata Investment Corporation Limited (which holds 10,23,685 shares) intends to tender 11,055 shares.

TCS’s previous buyback, which cost approx. 16,000 crore, opened on December 18, 2020 and closed on January 1, 2021, in which the group’s holding firm Tata Sons had tendered shares worth Rs. 9,997.5 crores. At that time more than 5.33 crore equity shares were purchased (the offer price was 3,000 each) and out of the total 3,33,25,118 shares of Tata Sons were accepted under buyback offer.

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 states that the offer price 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 Thursday, January 6, 2022.