Smaller peers such as Infosys and Wipro have also initiated buyback programs to return surplus cash on their books to shareholders.
India’s largest IT firm Tata Consultancy Services (TCS) on Friday said its board will consider the buyback proposal on January 12.
“…the Board of Directors in its meeting to be held on January 12, 2022, will consider the proposal for buyback of equity shares of the company,” a regulatory filing said.
No other details of the buyback offer were disclosed.
The board of the Mumbai-based company is scheduled to meet on January 12 to approve and record the company’s financial results for the third quarter and nine months ending December 31, 2021.
At the end of September 2021 quarter, TCS had cash and cash equivalents of Rs 51,950 crore.
Shares of TCS closed at Rs 3,854.85, up 1.26% on the BSE on Friday.
TCS’s previous buyback offer of around ₹16,000 crore was open on December 18, 2020 and closed on January 1, 2021. Under this offer, over 5.33 crore equity shares were bought back at ₹3,000 per share.
In 2018, TCS had launched a share buyback program of up to Rs 16,000 crore. The buyback consisted of 7.61 crore shares at 2,100 per equity share. In 2017 too, TCS had taken up a similar share purchase programme.
Smaller peers such as Infosys and Wipro have also initiated buyback programs to return surplus cash on their books to shareholders.
In September last year, Infosys said it has bought back over 5.58 crore equity shares as part of its approximately Rs 9,200 crore buyback offer. The process – conducted through the open market through Indian stock exchanges – shares were bought back in the range of ₹1,538.10 and ₹1,750.
Wipro also completed a buyback of ₹9,500 crore in January last year.