Shares of Tata Consultancy Services will turn ex-date on February 22 for the ₹18,000-crore buyback. That means traders who wish to participate in the buyback, today is the last date to acquire the shares. The ompany has fixed February 23 as record date.

TCS, at its board meeting held on January 12, approved to buy back four crore shares (1.1 per cent of its equity) through a tender offer at a price of ₹4,500 a share.

According to the SEBI regulations, 15 per cent of the offer size (appx ₹2,700 crore) is reserved for small shareholders holding shares up to a value of ₹2 lakh as on the record date. So, the market lot would work out to 44 shares (Rs 2 lakh divided by ₹4,500).

Profit potential

At Friday’s closing price of ₹3,794.80, acquiring 44 shares would cost approximately ₹1.67 lakh. If the acceptance ratio stands at 25 per cent, then profit works out to ₹7,757. According to analysts, the acceptance ratio would be around 15-25 per cent. However, with retail investors holding 3.6 per cent (as of December end) and might have risen in the last few days, the possibility of the acceptance ratio falling to 4-10 per cent is high, they added. Manoj Dalmia, founder and director, Proficient equities Private limited, said those who want some profit in the short-term could tender their shares at a reasonable premium, while others can hold for a long term basis, considering its strong fundamentals.

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