At Rs 18,000 crore, TCS unveils largest stock buyback ever

MUMBAI: Tata Consultancy Services (TCS) announced a mega stock repurchase proposal on Wednesday to reward shareholders. The move is supported by higher profits and cash flows as the software services giant benefits from the pandemic-induced digital ramp-up. TCS proposes to carry out a Rs 18,000-crore share buyback, which will be the biggest stock repurchase by an Indian company and the year’s first such capital-reduction move.
TCS would buy back 4 crore equity shares at Rs 4,500 apiece. The announced rate is at a 17% premium to the Wednesday closing price of the TCS stock, which ended at Rs 3,857 on the NSE. The proposal, the fourth in five years by the company, tops its previous three share buyback deals of Rs 16,000 crore each. “The Rs 18,000-crore buyback size translates into 1.08% of TCS’s outstanding equity, which is not material per se. But what is important is the intent…

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