TCS has fixed the record date for its ₹17,000 crore share buyback plan on 25 November.
Tata Consultancy Services (TCS), a leading Indian IT business, said in a stock market filing on Wednesday that the record date for its ₹17,000 crore share purchase plan has been set for November 25.
On October 11, the big IT company said that it would repurchase up to 4,09,63,855 fully paid-up equity shares with a face value of ₹1 apiece, for a total of ₹4,150 per equity share, or ₹17,000 crore.
On Wednesday, the company’s shares finished 2.03% higher on the BSE at ₹3399 per share.
Following the guidelines set forth in Regulations 42 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Regulation 9(i) of the Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018, as amended, TCS announced in its stock filing on Wednesday that it has set Saturday, November 25, 2023, as the Record Date. This data will be used to determine the equity shareholders’ names and entitlement to participate in the Buyback.
At ₹4,150 per equity share, the Tata Group company’s sixth share repurchase in the last six years will account for 1.12% of the entire paid-up equity share capital.
TCS announced a ₹11,432 crore net profit for the Q2 FY24 quarter in addition to its repurchase strategy. The September quarter of FY 23–24 saw an 8.7% YoY increase in net profit for the IT company. Compared to the June quarter before, when it made ₹11,074 crore, its net profit climbed by 2.4% QoQ.
Experts in the markets think that the TCS repurchase will turn out to be a calculated move for the Indian IT industry. TCS’s stock performance will improve as a result of the news, which will increase investor confidence. Nonetheless, within the last month, the company’s stock value has decreased by about 3.54%.
The deliberate move by the Indian IT major, TCS, to buy back shares is expected to boost investor confidence and portend further gains in TCS stock prices. Sandeep Pandey, Director at Basav Capital, stated that the business intends to cease selling off after the Q2 results of 2023.