Mumbai: India’s largest software service firm, TCS, on Friday approved a Rs 16,000 crore share buyback plan at Rs 2,100 per share, a steep premium of over 17 per cent to its previous days closing price of Rs 1,792.25.
The announcement, which came during the market hours triggered a 3 per cent rally in the stock taking it to an all time high of Rs 1,849 on the BSE. The company would buy back 7.61 crore shares, being 1.99 per cent of the total paid up equity share capital.
“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 mechanism in accordance with the provisions contained in the Sebi (Buy Back of Securities) Regulations, 1998 and the companies Act 2013 and the rules made there under,” TCS said.
It had announced a similar plan last year when it approved to buy back 5.6 crore shares.
