Information technology company Tata Consultancy Services is contemplating a buyback of its equity shares. The decision will be discussed at the board meeting scheduled for October 11, 2023, as mentioned in the company’s official statement.
The TCS board will discuss a proposal for a share buyback on the day the IT major plans to reveal its Q2FY24 financial results.
According to a report by Moneycontrol, TCS launched its last share buyback in the year 2022 when the IT major bought back shares worth Rs 18,000 crore.
The issue size consisted of 4 crore shares priced at Rs 4,500 apiece with face value of Re 1 per share.
Buyback of equity shares
A buyback of equity shares, also known as a share repurchase, occurs when a company purchases its own outstanding shares from the open market or directly from its shareholders. This process involves the company using its funds to buy back a specific number of its own shares.
Moreover, earlier this year, two other major IT companies completed share buybacks.
In February 2023, Infosys ended its buyback after purchasing 6.04 crore of its shares for Rs 9,300 crore. The average buyback price of Infosys was Rs 1,543.1 compared to the maximum buyback price of Rs 1,850 per share.
In June, Wipro announced a Rs 12,000 crore share buyback, its largest ever. The company recorded an acceptance ratio of 77.40 percent among retail participants.
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