TCS to buy back Rs 16K cr shares, Wipro to consider plan
TCS offer price is at 9% premium to Wednesday’s close; Wipro board to decide on the issue on October 13
Tata Consultancy Services (TCS) on W ednesday announced a mega-Rs 16,000 cr ore b uyback plan at Rs 3,000 per equity share.
In 2017 and 2018 too , TCS had undertaken b uyback of fers of similar sizes.
"...the Board of Directors of the company a t its meeting held to - day has a pproved a pr oposal to buyback up to 5,33,33,333 equity shares of the company for an aggregate amount not ex ceeding Rs 16,000 cr ore, being 1.42% of the total paid-up equity shar e capital a t Rs 3,000 per eq uity share," TCS said i n a r egulatory filing on Wednesday.
The b uyback will be conducted via a tender of fer route using the stock ex change mec hanism, it added.
The b uyback of fer is subject to the a pproval of t he memb ers b y means of a special r esolution through a postal b allot, the fil ing said.
A public announcement setting out the process, timelines and other r equisite det ails will be r eleased in due course following the buyback regulations, it added.
Meanwhile, s maller ri val Wipro has also announced tha t its Boar d wi ll consider a b uyback plan on October 13. However, no other details we re p rovided. T he T CS' of fer price of Rs 3,000 per equi ty shar e i s 9.6% higher than the stock's closing at Rs 2,737.40 on BSE on Wednesday.
In 2018, TCS had under taken a share buyback plan worth up to Rs 16,000 cr ore, of fering Rs 2,100 per equity shar e and entailing up to 7.61 crore shares.
In 2017, TCS h ad conducted a similar share purchase exercise. The comp any had said its b uyback of fer was par t of its longterm capital allocation policy of returning ex cess cash to shar eholders.
In a se parate filing, T CS said its Chief Financial Officer V Ramakrishnan w ould be retiring from the compan y on A pril 30, 2021.
Based on the recommendations of the Nomina tion and R emuneration Committee , the Boar d has appointed Samir Seksaria as Chief Financial Of ficer Designate.