Is it true that TCS buyback program has been largely oversubscribed?

With one more day to go for the TCS buyback to close on 23rd March, the proposed Rs.18,000-crore share buyback program is already oversubscribed 5.5 times. It would end up being higher by the close of Wednesday. The buyback had opened on 09th March. Incidentally, this is the fourth buyback TCS has conducted in the last five years.

With a favourable tax treatment, buybacks have become a preferred mode for promoters to reward shareholders, including themselves, with tax-efficient returns. Against the intended buyback of 40 million shares, TCS has got applications for 220 million shares tendered by investors. That is hardly surprising considering that the buyback is being conducted at a price Rs.4,500 per share, which is a 21% premium to CMP. Acceptance ratio could be 14.3%.