Tata Consultancy Services (TCS) last month had announced that its board had approved a buyback (repurchase of shares) of Rs 16,000 crore to purchase around 53.3 million shares at Rs 3,000 per share.
Shareholders of the company have also provided approval for the buyback plan. The voting, which started on October 20 and ended on November 18, saw 99.57 per cent of the votes being cast in favour of the buyback offer.
Last year, TCS had offered a special dividend of Rs 40 per share and this time it is undertaking a buyback. In 2018, TCS had undertaken a share buyback of about Rs 16,000 crore. Wipro, another IT services giant also announced the record date for its share buyback plan on Wednesday. It will undertake a Rs 9,500 crore share buyback programme for up to 23.75 crore equity shares of the company at Rs 400 per share.
Post buyback announcement, however, the stock of Tata Consultancy Services has underperformed the market by falling over 3 percent during today’s intraday trade, as compared to a 11.6 per cent-rally in the BSE Sensex till Wednesday. The stock hit a record high of Rs 2,885 on October 8, 2020.
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