India's largest IT conglomerate Tata Consultancy Services (TCS) on Friday said its Board will mull a buyback proposal on January 12. "The Board of Directors will consider a proposal for buyback of equity shares of the company, at its meeting to be held on January 12, 2022," a regulatory filing said. No other details of the buyback proposal were disclosed.
The Board of TCS is scheduled to meet on January 12 to approve and take on record the financial results of the company for the 3RD quarter and 9 months ending December 31, 2021. At the end of the September 2021 quarter, TCS had cash and cash equivalents of Rs 51,950 crore. On Friday, TCS shares closed 1.35 percent higher at Rs 3,858.90 on National Stock Exchange. TCS' previous buyback offer of around Rs 16,000 crore had opened on December 18, 2020, and closed on January 1, 2021. Over 5.33 crore equity shares were bought back under the offer for Rs 3,000 apiece.
In 2018, TCS had undertaken a share buyback programme worth up to Rs 16,000 crore. The buyback, at Rs 2,100 per equity share, had entailed up to 7.61 crore shares. In 2017 too, TCS had taken a similar share purchase programme. Smaller peers like Infosys and Wipro have also undertaken buyback programmes to return surplus cash on their books to shareholders.