Tata Consultancy Services (TCS) has disclosed the schedule for its share buyback program, commencing on December 1 and concluding on December 7. Shareholders can offer their shares to the company at a rate of Rs.4,150 per share.
For smaller shareholders with investments under Rs.2 lakh, the entitlement ratio stands at 1 equity share for every 6 shares held as of the record date, which was November 25. This ratio corresponds to roughly 17%. Other eligible shareholders are entitled to 2 shares for every 209 shares held.
The buyback price of Rs.4,150 signifies a 20% premium over the BSE's closing price of Rs.3,457.60 on Friday. The stock traded at Rs.3,478.80, marking a 0.6% increase throughout the day.
TCS anticipates a boost in its earnings per share (EPS) from Rs.58.52 to Rs.59.18 on a standalone basis and an increase in net worth from 49.89% to 62.56% as a result of the buyback.
Should all shareholders exercise their buyback entitlements completely, the combined shareholding of the promoters will rise marginally to 72.41% from the current 72.3%.
Two holding companies within the Tata Group, Tata Sons, and Tata Investment Corporation, have expressed interest in participating in the buyback, potentially tendering a combined maximum of 2,96,15,048 equity shares. The total buyback comprises 4,09,63,855 shares.
TCS plans to finance the buyback using existing surplus funds and/or internal earnings.