Tata Consultancy Services is an IT services, consulting and business solutions organization that has been partnering with many of the world’s largest businesses in their transformation journeys for the last fifty years. TCS offers a consulting-led, cognitive powered, integrated portfolio of IT, business & technology services, and engineering. Promoters to participate in TCS' Rs 16,000 crore buyback offer. 3) Is shareholders as Promoters needed to participate in Buy back ? If so, It is an selfish move to reward promoters by speculation news. Buyback has to increase sentiments of Retail investors, Mutual funds and Foreign investors about company Not promoters sentiments . In case of TCS for safety measure, we considered Retail investors who were holding shares between 0-95 because even if the price goes above 2100( the buyback price) you will be still be considered under retail category. The 15 per cent reserved shares would mean retail investors can tender 1.14 crore shares. TCS' annual report for FY18 suggested that a total 4,78,452 shareholders held anywhere between 1 and 100 shares, as of March 31. These investors together held nearly 1.65 crore shares. TCS traded at Rs 2,910 on March 31, 2018. So an investor who held 68 shares or below was considered retail investor then (2,910x 68 = nearly Rs 2 lakh). So, in the Wipro example, the company would have to set aside Rs 1,650 crore for retail investors (15 per cent of Rs 11,000 crore). Investors can then fill the tender form sent by the company for the buyback and indicate the number of shares that they wish to offer in the buyback. Retail Arbitrage Opportunity: 15% of the offer has to be mandatorily reserved for Shareholders holding shares of a value of Rs.200,000.00 or less on the record date. In case of the TCS buy back, this will mean reservation of 84,21,052 equity shares or about 0.4% of the total shareholding. 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.
Madhu Babu, Research Analyst - Institutional Equities, Prabhudas Lilladher, says that unlike last year’s buyback, this time it is expected to benefit the promoters and institutions more than retail investors. Edited excerpts: It has been a year since the Rs 16,000-crore buyback by TCS. Some say it could perhaps be at a 6% premium to the current market price.
So, in the Wipro example, the company would have to set aside Rs 1,650 crore for retail investors (15 per cent of Rs 11,000 crore). Investors can then fill the tender form sent by the company for the buyback and indicate the number of shares that they wish to offer in the buyback. Retail Arbitrage Opportunity: 15% of the offer has to be mandatorily reserved for Shareholders holding shares of a value of Rs.200,000.00 or less on the record date. In case of the TCS buy back, this will mean reservation of 84,21,052 equity shares or about 0.4% of the total shareholding. 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 Board of Directors of Tata Consultancy Services Ltd, at its meeting held on February 20, 2017 has approved a proposal to buyback up to 5,61,40,351 Equity Shares (Five crore sixty one lakh forty thousand three hundred and fifty one only) of the Company for an aggregate amount not exceeding Rs 16,000 crore, being 2.85% of the total paid up equity share capital, at Rs. 2,850 per Equity Share. Read more about Your money: TCS buyback offer attractive for retail investors on Business Standard. At Rs 2,850 a share, buyback is 13.7% above Monday's close; scrip may not see such a price too soon
TCS Group Holding plc is an innovative provider of online retail financial money transfers), savings, investments, loyalty programmes, travel services, SME 11 Mar 20, TCS Group Holding PLC announces a GDR buyback programme.
27 Jun 2018 The company announced that it will buyback 7.62 crore shares, or 1.99% of its equity, through a tender offer at a price of Rs2,100 per share. 20 Feb 2017 India's biggest software exporter Tata Consultancy Services (TCS) may largest ever buyback in the history of the capital markets but investors may “The retail acceptance ratio is likely to be around 13% while the overall 18 Jun 2018 The trend of rising buybacks in the last two years, resembles the sentiment of a momentum investor. The appetite to buy shares kept rising with 20 Feb 2017 TCS on Monday announced that it will do a buyback of 5.61 crore shares Retail investors however should note that the acceptance ratio is Tata Consultancy Services (TCS) Board's approval of a proposed buyback of over Rs 16,000 crore, or 2.85%, equity shares on a "proportionate basis" could see a lower acceptance ratio for the retail shareholders if the promoters, who own a substantial over 70% of the company's shares, decide to tender a large portion of their shareholdings, said IN a bid to improve returns to shareholders, India’s largest software services exporter Tata Consultancy Services (TCS) has announced a Rs 16,000-crore share buyback. The board has approved the buyback of up to 5.61 crore equity shares of the company. Tata Consultancy Services is an IT services, consulting and business solutions organization that has been partnering with many of the world’s largest businesses in their transformation journeys for the last fifty years. TCS offers a consulting-led, cognitive powered, integrated portfolio of IT, business & technology services, and engineering.
