IT major Tata Consultancy Services’ ₹17,000 crore share buyback will start on December 1 and end on December 7, the company said in an exchange filing on Tuesday.

On October 11, the TCS board had given a nod to buy back up to 4,09,63,855 equity shares of the company for an aggregate amount not exceeding ₹17,000 crore. This represents 1.12 per cent of the total paid-up equity share capital, as of September 30. 

No material impact

The equity shares of the company are proposed to be bought back at a price of ₹4,150 per share, at a nearly 20 per cent trading price from ₹3,473 per share reported at market closing time. “The company believes that the buyback is not likely to cause any material impact on the profitability or earnings of the company except to the extent of reduction in the amount available for investment, which the company could have otherwise deployed towards generating investment income,” said TCS in an exchange filing.

The firm also stated that assuming the response to the buyback is to the extent of 100 per cent (full acceptance), the aggregate shareholding of the promoters/promoter companies after the completion of the buyback shall be 72.41 per cent from 72.3 per cent at present. Tata Sons will tender a total of 2.96 crore (29,603,690) of its shares in Tata Consultancy Services (TCS) worth ₹12,284 crore.

TCS bought back its shares for the first time in 2017, buying back shares worth 16,000 crore in February at an 18 percent premium to the prevailing price. This was followed by two buybacks of ₹16,000 crore each in June 2018 and October 2020, at an 18 and 10 percent premium. The last was in January 2022. The company bought shares worth ₹18,000 crore at a premium of 17 percent.