TCS Buyback : The Tata Group affiliate and one of the biggest global providers of IT services, Tata Consultancy Services (TCS), announced the repurchase.
TCS has already announced many buybacks, the most recent in 2021. TCS offered to repurchase up to 5,33,33,333 equity shares—or 1.42% of its total paid-up equity capital—for Rs. 3,000 for this buyback for a potential full payment of an unlimited amount of up to Rs. 16,000 crores.
The repurchase often aims to increase shareholder value and return surplus cash to owners. Lowering the number of outstanding shares also helps increase the company’s profits per share (EPS) and return on equity (ROE).
Individual shareholders may decide whether to participate in a repurchase, and it is advised that they thoroughly explore their alternatives and consult with a financial advisor before making any investment decisions.
When will the TCS buyback start?
Depending on the precise terms and circumstances of the repurchase program, the requirements for participating in the TCS buyback may change. However, generally speaking, TCS stockholders who satisfy the following criteria are qualified to take part in the buyback:
- The shareholder must own TCS stock as of the company’s designated record date for the repurchase.
- The shareholder must have a valid PAN card and be an Indian resident.
- To participate in the repurchase, the shareholder must own a minimum number of shares as determined by the firm.
The qualifying requirements for various buyback programs may differ. Therefore, shareholders should carefully consider the terms and circumstances of the repurchase before participating. Additionally, shareholders should speak with a financial counselor or broker to fully comprehend the possible advantages and hazards of taking part in a buyback.