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The mega ₹17,000-crore buyback offer from Tata Consultancy Services witnessed a strong response from investors, as it was subscribed 6.5 times, according to BSE data.. The buyback offer that opened on December 1 closed on Thursday.
The company planned to repurchase 4.09 crore shares at ₹4,150 apiece and received bids for 26 crore shares. . TCS shares closed at ₹3,616 on Thursday on BSE.
The promoters’ combined shareholding is expected to rise to 72.41 per cent from the current 72.3 per cent, and EPS from ₹58.52 to ₹59.18 on a standalone basis, post the buyback. Tata Sons and Tata Investment Corporation, two holding companies, had indicated their intention to participate in the buyback.
This is the fifth buyback offer from the Tata group company. In 2017, TCS launched its first buyback offer for ₹16,000 crore; this was followed by two buybacks of ₹16,000 crore each in June 2018 and October 2020; and the last one was in January 2022 worth ₹18,000 crore.
The company had fixed November 25 as record date to participate in the buyback offer.
Promoters holding stood at 72.30 per cent at the end of September 2023. Among the public shareholders, LIC was holding 4.81 per cent or 17.60 crore shares; FPIs’ stake stood at 12.47 per cent. About 22.64 lakh retail investors were holding 4.31 per cent in TCS.
The entitlement ratio for small shareholders was 1 share for every 6 shares held while for others the same was 2:209.
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