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Saturday , 20 October 2018
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TCS all set to buy back shares worth Rs.16,000 Crores

 Tata Consultancy Services (TCS) will commence its Rs 16,000-crore mega shares buyback from May 18, 2017. The buyback programme will end on May 31st. The Letter of Offer for buy back will be sent to all the eligible shareholders on or before 16th May,the company said.

The buyback programme, which received shareholder approval last month and if successful, it will be India’s biggest buyback program surpassing Reliance Industries’ 2012 share repurchase of Rs 10,400 crore.

TCS received suggestions earlier from its investors who wanted a certainty on dividend policy along with the share buyback to distribute the surplus cash, it had on its coffers as they felt the buy backs would improve EPS – Earnings Per Share and would also enable the company to return surplus cash to the share holders beating the market volatile condition.

 

The Mumbai-based company is sitting on a cash pile of Rs 43,169 crore, which is nearly 10 per cent of the company’s market capitalisation. Some of the companies which has approved buyback apart from TCS include Infosys with Rs.13,000 Crores, Cognizant with USD3.4 Billion, HCL Technologies with Rs.3,500 crores.
 
Cognizant has announced it buyback after one of its major investor Elliott Management Corp put pressure on the company to go for it.

 

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