This is the IT major's fourth and biggest buyback in the last five years.
Top software services exporter Tata Consultancy Services (TCS) has approved the buyback of shares worth Rs 18,000 crore and fixed February 23 as the record date for determining the entitlement of equity shareholders.
"This is further to our letter dated January 12, 2022, informing the decision of the board of directors of the company to buyback up to 4,00,00,000 fully paid-up equity shares of face value of Re l each at Rs 4,500 per equity share for an aggregate amount not exceeding Rs 18,000 crore," TCS had stated in a regulatory filing on Saturday.
This is the IT major's fourth and biggest buyback in the last five years."The members of the company have approved the buyback by passing a special resolution through postal ballot," TCS had mentioned.TCS' previous buyback offer of around Rs 16,000 crore had opened on December 18, 2020, and closed on January 1, 2021.
Around 5.33 crore equity shares were bought back under the offer for Rs 3,000 apiece.In 2018, India's largest IT services firm repurchased shares worth up to Rs 16,000 crore at Rs 2,100 apiece.
A similar exercise was carried out in 2017 as well.TCS had reported a 12.2 per cent rise in its consolidated net profit to Rs 9,769 crore in the December 2021 (Q3) quarter.
Shares of the IT company were trading 1.52 per cent higher at Rs 3,751.60.
However, both BSE Sensex and NSE Nifty plunged heavily on Monday amid rising geopolitical tensions.