Tata Consultancy Services (TCS)'s market value crossed Rs 7 lakh crore mark as the stock hit a fresh high after the IT major approved Rs 16,000 crore share buyback plan in order to share with shareholders the excess cash TCS is sitting on. The company will buy back 7.6 crore shares at a price of Rs 2,100 per share, nearly 16 per cent premium to current market price.  

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The stock rallied as much as 3.16 per cent to its lifetime high of Rs 1849 on the BSE. 

"Board has approved a proposal to buyback up to 7,61,90,476 equity shares of the Company for an aggregate amount not exceeding Rs 16,000 crore being 1.99 per cent of the total paid up equity share capital, at Rs 2,100 per equity share," said TCS in a filing to BSE. 

"The Buyback is subject to approval of the members by means of a special resolution through a postal ballot," the report added. 

"The buyback is proposed to be made from the shareholders on a proportionate basis under the tender offer route using the stock exchange mechanism in accordance with the provisions contained in the Sebi (Buy Back of Securities) Regulations, 1998,” the company said. 

Promoters hold 71.92 per cent stake in the company, while foreign investors own 17.13 per cent holdings. 

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Last year, TCS had undertaken a Rs 16,000-crore mega buyback offer, entailing 5.61 crore shares at a price of Rs 2,850 per equity share.

The buyback process had seen Tata Sons tendering over 3.60 crore shares, accounting for 64.2 per cent of the total shares bought back by the company. Other large investors who participated in the buyback were Government of Singapore, Copthall Mauritius Investments Ltd and EuroPacific Growth Fund.