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TCS announces its biggest share buyback in 5 years

January 13, 2022

TCS announces its biggest share buyback in 5 years

The board of Tata Consultancy Services has suggested a ₹18,000-crore share buyback-the fourth and greatest such exercise by India’s biggest IT services firm in the beyond five years.

Shares in the TCS buyback will be proced at ₹4,500 each.

Between Dec. 18, 2020, and Jan. 1, 2021, the IT bellwether returned ₹ 16,000 crore to investors in a buyback, wherein Tata Sons offered shares worth around ₹10,000 crore. As numerous as 5.33 crore value shares-including Tata Sons’ 33,325,118-were repurchased at ₹3,000 each. TCS had embraced comparable repurchases in 2018 and 2017.

During a buyback, an organization repurchases its portions from existing investors, normally at a cost higher than the common market rate. Subsequently, the quantity of shares outstanding in the market reduces.

Peers Infosys Ltd. also Wipro Ltd. have in the course of recent years affected similar buybacks.

In 2019-20, Infosys improved its capital distribution plan and said it would return 85% of its free income to investors by means of buybacks and profits over the course of the following five years.

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