Tata Consultancy Services approves buyback plan; to spend Rs 16,000 crore

Tata Consultancy Services (TCS) on Monday said that its board has approved share buyback proposal. 

In its board meeting held on Monday, TCS decided to buy back 5.61 crore equity or 2.85% of the company's total capital.  The company said that it will be buyback these shares at Rs 2850 per share thereby spending up to Rs 16,000 crore. 

TCS said, "The buyback is proposed to be made from the shareholders of the company on a proportionate basis under the tender offer route using the stock exchange mechanishm in accordance with the provisions contained in Sebi. 

A buyback of shares is also known as a repurchase of shares by a company of its outstanding shares that reduces the number of its shares on the open market.

TCS's CEO and managing Director Natarajan Chandrasekaran will be take his charge as chairman of Tata Sons on Tuesday. Rajesh Gopinathan will replace Chandrasekaran at TCS. 

Shares of TCS closed at Rs 2506 per piece on BSE, above Rs 97 or 4.06%.