TCS Board approved a share buyback proposal worth Rs 16,000 crore

The Board of Directors of Tata Consultancy Services (TCS) on Wednesday approved a proposal over 5.33 crore equity shares for up to Rs 16,000 crore. The buyback price would be Rs 3,000 per share.

The company in a regulatory filing has said, "The Board of Directors of the company has approved a proposal to buyback up to 5,33,33,333 equity shares of the company for an aggregate amount not exceeding Rs 16,000 crore, being 1.42 per cent of the total paid-up equity share capital, at Rs. 3,000 (Rupees three thousand only) per Equity Share."

The buyback is proposed to be made from the shareholders of the Company on a proportionate basis under the tender offer route using the stock exchange mechanism in accordance with the provisions contained in the SEBI (Buyback of Securities) Regulations, 2018 (hereinafter referred to as the "Buyback Regulations") and the Companies Act, 2013 and rules made thereunder.

The Buyback size does not include any taxes and expenses incurred or to be incurred for the buyback like filing fees payable to Securities and Exchange Board of India, advisory fees, public announcement publication expenses, printing and dispatch expenses, and other incidental and related expenses.

The Buyback is subject to the approval of the Members by means of a special resolution through a postal ballot. The public announcement setting out the process, timelines and other requisite details will be released in due course in accordance with the Buyback Regulations.

On Wednesday, TCS shares on the BSE closed at Rs 2,737.40, higher by Rs 21.25 or 0.78 per cent from the previous close.