TCS shareholders approve buyback plan. Here’s what you need to know
Tata Consultancy Services (TCS), India’s largest IT companies agency, has mentioned its shareholders have authorized its as much as Rs 16,000 crore share buyback plan. TCS’ board of administrators had final month authorized a proposal to purchase again as much as 5,33,33,333 fairness shares of the corporate at Rs 3,000 per scrip for an combination quantity not exceeding Rs 16,000 crore. TCS’ smaller rival Wipro has additionally introduced an as much as Rs 9,500-crore buyback plan at Rs 400 per fairness share.
“….the members of the company have duly passed the special resolution approving the Buyback,” TCS mentioned in a regulatory submitting on Wednesday.
Here is what it’s essential to know:
1. The voting, which began on October 20 and ended on November 18, noticed 99.57% of the votes being forged in favour of TCS’ buyback provide. There was 100% voting in favour of the proposal by the promoters, 98.11% by public institutional shareholders and 98.43% by different shareholders.
2. In one other submitting, TCS mentioned it has mounted November 28 because the document date for the buyback. “…the company has fixed Saturday, November 28, 2020, as the Record Date for the purpose of determining the entitlement and the names of the equity shareholders who shall be eligible to participate in the Buyback,” it mentioned.
3. Rajesh Gopinathan, TCS chief govt and managing director, had mentioned earlier that the corporate is targeted on its coverage to return capital to shareholders.
4. The Mumbai-based firm’s money reserves stood at Rs 58,500 crore as of September 2020.
5. Last yr, TCS had provided a particular dividend and this time it’s enterprise a buyback. In October 2019, TCS’ board had declared a particular dividend of Rs 40 per fairness share.
6. A yr earlier than that, TCS had undertaken a share buyback of about Rs 16,000 crore.
7. TCS had held an identical share buy train in 2017 as effectively. The firm had mentioned its buyback provide was a part of its long-term capital allocation coverage of returning extra money to shareholders.
(With PTI inputs)
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