TCS BECOMES 2ND FIRM TO HIT ₹8 LAKH CRORE MCAP AFTER RIL

Tata Consultancy Services Ltd’s (TCS) market cap surged past ₹8 lakh crore mark for first time on Tuesday, making it only the second Indian company after Reliance Industries Ltd (RIL) to achieve the milestone.

TCS share price rose 1.86% to closed at a record high of ₹2,093.20 on the BSE, imparting the IT bellwether a market cap of ₹8.01 trillion. In intraday the stock hit an all time high of ₹2,100 a share. Of the 50 brokers tracking the TCS stock on Bloomberg, as many as 22 recommend a “buy” rating, eight recommended “sell” the stock 20 brokerage has a “hold” rating. TCS stock, which has so far this year surged 54.6%, has been rising daily due ahead of a share buyback offer on September 6. The buyback will closed on September 21. A weakening rupee has been benefiting the IT stocks, and TCS is no exception.

The ₹16,000 crore TCS share buyback will see the company purchase 76.19 million of its shares via a tender at ₹2,100 apiece. This aggregates to up to 1.99% of the paid-up equity capital. According to a BSE notice, Tata Sons Ltd has expressed interest in participating in the TCS share buyback and may tender up to an aggregate 54.77 million shares, or 1.43% its stake, in the company. Tata Investment Corp. Ltd expressed to sell 20,978 shares, Tata Steel Ltd may tender 947 shares, Tata Industries Ltd 145 shares and Tata Power Co. Ltd 16 shares

Share buybacks typically improve earnings per share and return surplus cash to shareholders, while supporting the stock price during sluggish market conditions.

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