InvestorQ : Can you tell me details of the TCS Buyback program and when it is likely to be completed by the company?
diksha shah made post

Can you tell me details of the TCS Buyback program and when it is likely to be completed by the company?

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shrinidhi Rajan answered.
3 months ago
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You must be aware that TCS had announced its buyback as part of its quarterly results announcement in October itself. The Rs.16,000 crore buyback program of TCS will commence on December 18, 2020 and close on January 01, 2021.

It may be recollected that the shareholders had already approved the buyback plan in November this year. The buyback entails the purchase of 5.33 crore shares by the company at a maximum price of Rs.3,000 per share.

Under the terms stipulated by the regulator, TCS will send the official letter of offer for the buyback to all the eligible shareholders by 15 December. For the purpose of eligibility of buyback, TCS has fixed 28 November as the record date for the buyback. Shareholders whose name appeared in the register on 28 Nov will only be eligible for the buyback.

This buyback is critical as there was a virtual lull in buyback of shares after the government imposed the rather controversial buyback tax in the 2018 Union Budget. However, in the 2020 Union Budget, dividends have been taxed at peak rates and that has once again made buyback of shares attractive in relative terms.

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