TCS buyback: IT major to trade ex-date tomorrow

TCS buyback record date: The IT major has fixed Saturday, November 25, as the record date for the purpose of determining the entitlement and the names of the equity shareholders who shall be eligible to participate in the buyback.

TCS buyback: Tata Consultancy Services (TCS) shares will turn ex-date tomorrow, November 24. Image: Reuters

TCS buyback: Tata Consultancy Services (TCS) shares will turn ex-date tomorrow, November 24, for the earlier announced buyback via the tender offer route. The board of directors of TCS approved a proposal to buy back up to 4,09,63,855 equity shares of the company for an aggregate amount not exceeding Rs 17,000 crore, representing 1.12 per cent, of the total paid-up equity share capital, at Rs 4,150 apiece in a meeting held on October 11.

TCS buyback details

TCS buyback issue type: Tender Offer

TCS buyback issue size: 4,09,63,855 shares (Rs 17,000 crore)

TCS buyback price: Rs 4,150 per share

TCS buyback record date

The IT major has fixed Saturday, November 25, as the record date for the purpose of determining the entitlement and the names of the equity shareholders who shall be eligible to participate in the buyback.

TCS share buyback: Here is what analysts say

“Short-term traders can buy TCS before the record date and use the opportunity to generate decent returns based on the assumed entitlement ratio. Based on the buyback rate of Rs 4,150, short-term investors can generate nearly 18 per cent ROI based on today’s Rs 3,519. In addition, investors would also take advantage of tax benefits, as the income generated from this buyback of shares is tax-exempt. We advise investors to buy 48 shares (Rs 200000/4150) to get maximum entitlement under the Rs 200000 retail category," Prashanth Tapse, Research Analyst, Sr VP, Research-Mehta Equities, suggests. Read more