Buyback of shares: Tata Consultancy Services Ltd or TCS share price will be in focus today as Indian IT major has declared buyback record date on 25th November 2023. The IT giant has already declared buyback of shares at ₹4150 per share. TCS share price today is around ₹3,425 apiece levels on NSE, which means TCS buyback is currently available at a premium of over 20 per cent.
TCS buyback: Should you tender your shares?
Advising TCS shareholders to tender one’s shares, Avinash Gorakshkar, Head of Research at Profitmart Securities said, “IT sector is expted to deliver sluggish numbers in next few quarters as economy in the US and Europe (where TCS has major business) is still under challenge. So, TCS shares are expected to remain in consolidation phase for few more quartes. Thus, this TCS buyback is a good opportunity for TCS shareholders to reap short term benefit. Most importantly, the income coming from this buybvack of shares would be tax exempted.”
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On outlook of TCS share price, Sumeet Bagadia, Executive Director at Choice Broking said, “TCS share price currently trading at ₹3425, has recently undergone a strong breakout from its trading range, forming new higher lows accompanied by substantial trading volumes. This trend indicates a positive shift in momentum for the stock. Furthermore, TCS is presently trading above crucial Exponential Moving Averages (EMAs), including the 20-day and 200-day EMAs, highlighting its bullish momentum and suggesting the potential for further upward price movement.”
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Bagadia said that due to buyback of shares some buying can be expected in TCS shares and it may go upm to ₹3570 apiece levels in short term. He advised TCS shareholders to maintain stop loss at ₹3320 per share levels. In fact, if someone plans to reap TCS buyback benefit, one can buy TCS shares at current levels maintaining stop loss at ₹3320 levels.
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TCS buyback date details
Informing Indian stock market exchanges about the TCS buyback record date, the IT giat said, “This is in furtherance of our letter no. TCS/BM/162/SE/2023-24 dated October 11, 2023 and letter no. TCS/BB/SE/201/2023-24 dated November 15, 2023, informing the decision of the board of directors and the members of the Company, respectively, to buyback up to 4,09,63,855 (Four crore nine lakh sixty three thousand eight hundred and fifty five) fully paid-up equity shares of face value of Re 1 each at ₹4,150 (Rupees four thousand one hundred and fifty only) per equity share for an aggregate amount not exceeding ₹17,000 crore (Rupees seventeen thousand crore only) excluding transaction costs, applicable taxes and other incidental and related expenses (“Buyback”).”
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decision.
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Updated: 16 Nov 2023, 09:44 AM IST