TCS fixes record date for its Rs 17,000 crore buyback; all you need to know

TCS share buyback date: "The Company has fixed Saturday, November 25, 2023, as the record date to determine the entitlement and the names of the equity shareholders who shall be eligible to participate in the buyback," the regulatory filing read.

This is the fifth buyback by TCS in the last five years, image- Reuters

TCS share buyback date: Tata Consultancy Services (NSE: TCS), the information technology (IT) major, has fixed November 25, 2023, as the record date for its Rs 17,000 crore share buyback. A record date is the day when the company checks its records to identify eligible shareholders for the previously announced corporate action.

"The Company has fixed Saturday, November 25, 2023, as the record date to determine the entitlement and the names of the equity shareholders who shall be eligible to participate in the buyback," the regulatory filing read.

Further, the company will buy back up to 4,09,63,855 fully paid-up equity shares of the face value of Rs 1 each at Rs 4,150 per share, which implies a premium of 22.1 per cent from Wednesday's closing price. As per the filing, the shares that are planned to be bought back represent 1.12 per cent of the total number of shares of the total paid-up equity share capital of the company as of October 6, 2023.

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"the Company, respectively, to buy back up to 4,09,63,855 (four crore nine lakh sixty-three thousand eight hundred and fifty-five) fully paid-up equity shares of the face value of Rs 1 each at Rs 4,150 (Rupees four thousand one hundred and fifty only) per equity share for an aggregate amount not exceeding Rs 17,000 crore (Rupees seventeen thousand crore only)," the filing read.

The buyback is in line with the company's shareholder-friendly capital allocation practices of returning excess cash to shareholders, thereby increasing shareholder value in the longer term and improving the return on equity (RoE). The buyback will be done through the tender route, in which the company announces a fixed price at which it will buy back shares from the existing shareholders.

This is the fifth buyback by the company in the last five years. TCS has bought back shares in the years 2017, 2018, 2020, and 2022. All the previous four buybacks were carried out via the tender offer route.

At around 10:28 a.m., shares of TCS were up over 1 per cent to Rs 3,442.1 apiece.

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