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Our Bureau The Tata Consultancy Services board on Friday approved a ₹16,000-crore share buyback plan in an attempt to distribute available cash among its shareholders.
In a regulatory filing, India’s largest software exporter said it will buy back about 7.6 crore shares under the scheme at a price of ₹2,100 per share. This amounts to 1.99 per cent of the company’s total paid-up equity share capital.
TCS promoters hold a 71.92 per cent stake in the Mumbai-based company.
Last year, too, TCS had announced a ₹16,000-crore buyback of shares, which was at that time the largest in Indian history. The company followed it up with an issue of bonus shares in April.
IT companies, which for long had stayed away from buying back shares, have been aggressively doing so over the past year in an effort to improve shareholder value.
In January 2017, the Mphasis board had approved a ₹1,100-crore buyback. Nasdaq-listed Cognizant last year announced a $3.4-billion buyback. Share buybacks improve a company’s earnings per share and help in shoring up value during sluggish market conditions.
TCS shares closed up 2.74 per cent at ₹1,841 on the BSE.
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