Tata Sons, Tata Investment Corporation to participate in TCS buyback offer

PTI Updated - January 14, 2022 at 08:41 AM.

On Wednesday, the TCS board had approved an upto Rs18,000 crore buyback offer at Rs4,500 apiece

Signage for Tata Consultancy Services Ltd. (TCS) is displayed atop of a building in the Synergy Park campus in Hyderabad, India, on Monday, April 11, 2016. TCS, India's largest software exporter, is scheduled to announce earnings on April 18. Photographer: Namas Bhojani/Bloomberg | Photo Credit: NAMAS BHOJANI

Tata Consultancy Services (TCS) promoters -- Tata Sons and Tata Investment Corporation -- intend to participate in the IT service major's Rs 18,000 crore buyback offer by tendering about 2.88 crore shares, according to a regulatory filing.

On Wednesday, the TCS board had approved an upto ₹18,000 crore buyback offer entailing 4 crore shares at ₹4,500 apiece.

According to a postal ballot notice by the company, the remote e-voting period will commence from January 14, 2022 and end on February 12, 2022.

The results of the postal ballot will be announced on February 15, 2022, it added.

As per the document, Tata Sons and Tata Investment Corporation also intend to participate in the buyback offer.

Tata Sons, which holds about 266.91 crore shares, intends to tender 2.88 crore shares, while Tata Investment Corporation (which holds 10,23,685 shares) intends to tender 11,055 shares, it added.

Previous buyback

The previous buyback of the TCS, worth about Rs16,000 crore, had opened on December 18, 2020, and closed on January 1, 2021, in which group holding firm Tata Sons had tendered shares worth ₹9,997.5 crore. Over 5.33 crore equity shares were bought at that time (offer price was Rs3,000 apiece) and out of the total, Tata Sons' 3,33,25,118 shares were accepted under the buyback offer.

As per the postal ballot detailed in Thursday’s stock exchange filing, promoter companies held 72.19 per cent share in TCS as on January 12, 2022.

It added that the offer price of ₹4,500 per share represents a premium of 18.21 per cent and 18.19 per cent over the closing price of the equity share on BSE and NSE, respectively, as on Thursday, January 6, 2022.

Published on January 14, 2022 03:11

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