IT major, Tata Consultancy Services (TCS) on Wednesday announced a share buyback programme which comprises of shares worth up to Rs 16,000 crore and, will commence on December 18 and close on 1 January, 2021.
Last month, the shareholders of TCS had approved the proposal of share buyback of up to 5,33,33,333 equity shares at Rs 3,000 each for an aggregate amount not exceeding more than Rs 16,000 crore. TCS will send the Letter of Offer to the investors on or before 15 December, 2020. The record date for this purpose is 28 November, 2020, said TCS in a regulatory filing. The last date of settlement of bids on the stock exchanges is 12 January, 2021.
Earlier, TCS CEO & MD Rajesh Gopinathan had said that the company is focused on its policy of returning to its shareholders. He had noted last year that TCS has offered a special dividend and this time it is undertaking a buyback. In October last year, the company’s board had declared a special dividend of Rs 40 per equity share.
In 2018, the company had undertaken a share buyback of about Rs 16,000 crore. TCS had also conducted a similar share purchase exercise in 2017. It said that its buyback offer was a part of its long-term capital allocation policy top return excess cash to shareholders.