Mumbai, June 15 (IANS) The Board of Indian IT major Tata Consulting Services (TCS) on Friday approved to buy back 7,61,90,476 equity shares of Re 1 face value at Rs 2,100 per share for about Rs 16,000 crore (over $2 billion).
"The buyback size is 1.99 per cent of the total paid-up equity share capital," the city-based firm said in a regulatory filing on the BSE.
This is the second time the global software major is resorting to buy back its shares after it bought 5.61-crore shares in April 2017 for Rs 16,000 crore at Rs 2,850 per share.
"The buyback will be on a proportionate basis under the tender offer route in accordance with the provisions of the SEBI regulations and the Companies Act, 2013," said the filing.
The offer, however, does not include expenses incurred for the buyback and is subject to approval by the shareholder by a special resolution through a postal ballot.
"A public announcement on the process, timelines and other details will be made in due course in accordance with the buyback regulations," added the filing.
The company's blue-chip scrip gained Rs 49.20 at the end of Friday's trading on the BSE to close at Rs 1,841.45 as against Thursday's closing price of Rs 1,792.25 and opening rate of Rs 1,801. The scrip also went up to a high of Rs 1,849 and a low of Rs 1,791 during the intra-trading sessions.
In addition to buying back its shares, the outsourcing firm gifted its investors with 1:1 bonus shares and a total dividend of Rs 50 per share for the last fiscal (2017-18), which amounts to a record 5,000 per cent per annum.
"Rs 26,800 crore of cash has been returned to shareholders in dividends and buyback during the fiscal," said the company in a filing on April 19.
