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TCS will buyback up to 5.33 crore equity shares at the fixed price of Rs 3,000 per share.

TCS share buyback offer opens. Should you accept it?

Tata Consultancy Services (TCS), the country’s largest IT company, Rs 16,000-crore share buyback offer opened today, on December 18. TCS will buyback upto 5.33 crore equity shares at the fixed price of Rs 3,000 per share. The offer will close on 1 January 2021. According to TCS, January 3 will be the last date for receipt of completed tender forms and other specified documents, including physical share certificates by the registrar. The company will settle bids in the buyback plan on January 12 on stock exchanges. The market, meanwhile, has exhibited excitement after Tata Consultancy Services announced the move, its shares hit a new 52-week high of Rs 2,898 apiece today.

TCS third share buyback

This is the third share buyback offer from the company in the last four years. In 2017, TCS bought shares at Rs 2,850 apiece, while in 2018, the IT firm bought back shares at Rs 2,100 apiece.

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Who are eligible for TCS share buyback offer?

Investors have to keep in mind that in order to be eligible for the buyback, they should have held shares of the company on the record date: November 28, 2020. The price of one TCS stock on the date was Rs 2,679.

In November, TCS shareholders had approved a share buyback proposal of ₹16,000 crore. “The board has approved a proposal to buy back up to 5,33,33,333 equity shares, being 1.42 percent of the total paid-up equity share capital, at ₹3,000 per equity share for an aggregate amount not exceeding ₹16,000 crore (excluding taxes and related expenses), on a proportionate basis under the tender offer route using the stock exchange mechanism, subject to the approval of the members by means of a special resolution through a postal ballot.”

Markets rise for the sixth day: IT stocks gain again

After opening at its lifetime intra-day high of 47,026.02, the 30-share BSE index pared some gains to finish at 46,960.69, up 70.35 points or 0.15 per cent. Similarly, the broader NSE Nifty rose 19.85 points or 0.14 per cent to 13,760.55 — its new closing record. IT stocks were in demand on Friday rising up to 3 per cent amid better-than-expected results from Accenture Plc. TCS has been one of the best-performing stocks of 2020, returning about 33% so far this year.