INSUBCONTINENT EXCLUSIVE:
Tata Sons, the investment holding firm of the Tata Group, intends to sell shares worth up to Rs 11,500 crore to Tata Consultancy Services
(TCS) as part of its buyback programme announced in June.
TCS had said it would buy back over 7.6 crore shares at a price of Rs 2,100 each
The buyback programme is worth Rs 16,000 crore.
Apart from Tata Sons, Tata Investment Corp Ltd, Tata Steel, Tata Industries and Tata Power
are also participating in the buyback, selling shares worth up to Rs 4.64 crore, according to regulatory filing with Securities and Exchange
Board of India (SEBI).
Tata Sons is expected to use the cash from TCS buyback to fund investment programmes of other Tata Group companies as
they expand their business presence through both organic and inorganic means.
ET had reported last month that Tata Sons had approved a Rs
Chandrasekaran, chairman of Tata Sons, is aggressively pitching for.
TCS said the current buyback is a capital allocation decision taken
been raising the amount of money they return to shareholders, following a letter sent by activist investor Elliott Management to Cognizant
Infosys and Wipro announced buybacks of Rs 13,000 crore and Rs 11,000 crore, respectively, last year
HCL Technologies announced a Rs 3,500 crore buyback in May 2017 and another of Rs 4000 crore in July.
Tata Sons holds 72% stake in TCS,
India's largest IT services firm and the Group's cash cow
The company reported a profit of $1.08 billion for the first quarter, up from $1.07 billion in the fourth quarter last year, its fastest in
Revenue for the quarter stood at $5.05 billion.
