TCS Share Buyback Offer: Tata Sons, TICL Headed for a Big ₹12,993 Cr Gain

    IT Giant TCS Share Buyback Offer will create some buzz in the stock market tomorrow. Tata Consultancy Services (TCS) has revealed the dates of mega ₹18,000 crore buyback and the offer will open on 9 March.

    The big gainer in this buy back offer is Tata Sons and TICL who are anticipated to gain around Rs. 12,993 Cr. On Friday, TCS shares closed 0.69% lower at ₹3,519.80 apiece on NSE

    The window will close on 23 March. The buyback offer will be undertaken at 17% premium (from the announced date) or ₹4,500 per share.

    TCS has fixed February 23, 2022, as the record date to determine the shareholders who will be eligible for the buyback.

    According to the news , IT giant’s promoters Tata Sons and TICL will participate in the buyback offer. Tata Sons holds about 266.91 crore shares in the company and it intends to tender 2.88 crore shares for the buyback, while TICL, which holds 10,23,685 shares, offered to tender 11,055 shares.

    TCS Share Buyback Offer – Who Gains?

    TCS Share Buyback Offer
    TCS Share BuyBack Offer – who gains – Image courtesy TCS Twitter

    At ₹4,500 apiece, the both Tata Sons and TICL stand to gain about ₹12,993 crore. TCS is seeking shareholder approval by way of special resolution for buyback of equity shares of the company.

    This is TCS‘ fourth buyback since 2017 and first for any company in the current calendar year. The company has approved share buybacks worth ₹16,000 crore each in 2017, 2018 and 2020.

    Here’s everything you need to know about the buyback offer

    Share buyback, or share repurchase, is when a company buys back its own shares from investors or stakeholders. It can be seen as an alternative, tax-efficient way to return money to shareholders. Buybacks are attractive in tax terms even after considering the 10% tax on long term capital gains (LTCG).

    Usually, companies go for share buyback if it wishes to increase demand in the market. Share buybacks reduce the number of shares in circulation, which can increase the share value and the earnings per share (EPS).


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