Follow my blog with Bloglovin
Friday , 22 March 2019
Breaking News

TCS announces Rs 16,000 crore share buyback

Aiming to return surplus cash to shareholders, TCS today announced the buyback of Rs 16,000 crore worth of shares. The TCS board has taken a decision to buyback up to 5.61 crore shares at the price of Rs 2,850 per share. This amounts to 2.85 percent of its share capital. The decision has been taken at a time when there are fears of revenue loss from US based clients due to the protectionist measures being implemented by Trump administration.

If the buyback is executed in entirety, it would become the biggest buyback in India’s history, surpassing the earlier record held by Reliance Industries in 2012, which was worth Rs 10,400 crore. Soon after TCS announced the buyback scheme, its shares rallied 4.08 percent to close at Rs 2,506.50 on the BSE, which is highest closing price in the last five months. TCS currently has a cash surplus of Rs 43,169 crore. This represents around 10 percent of the company’s market capitalization.

It may be recalled that earlier this month, a buyback of shares was also announced by Cognizant Technology Solutions Corp. Cognizant’s buyback was worth $3.4 billion. Experts opine that share buybacks usually improve earnings per share and can be used to stabilize share prices during sluggish market conditions. A buyback of shares is also being discussed at Infosys.

Comments are closed.

Scroll To Top