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Tata Sons tenders shares worth Rs 9,997.5 cr in TCS buyback

Tata Sons tenders shares worth Rs 9,997.5 cr in TCS buyback
Photo Credit: 123RF.com
7 Jan, 2021

As part of the Tata Consultancy Services’ Rs 16,000 crore buyback offer, the company’s single largest shareholder -- Tata Sons -- tendered 3.33 crore shares, worth Rs 9,997.5 crore.

TCS bought back 5.3 crore equity shares.

The tendering period of the buyback opened on December 18, 2020 and closed on January 1. The shares were bought back for an offer price of Rs 3,000 a piece, according to filings made by the company with the markets regulator. 

Following the buyback, TCS’ stock plunged to Rs 3,053 on January 6, after closing at Rs 3,093 on Monday. 

Ahead of their third quarter earnings announcements, the Nifty IT Index, which includes information technology (IT) services majors TCS, Infosys, L&T, Wipro, HCL Technologies, Coforge and Mindtree, have hit 52-week high on January 5. The index rallied nearly 130% since March touching 25,824.15 levels. 

In December, TCS rival Wipro also proposed to buyback upto 23.75 crore equity shares for upto a sum of Rs 9,500 crore and had floated tenders for the same. 

As per corporate announcement on BSE, all the shareholders of Wipro are eligible to participate in the buyback including promoters, their associates who are existing shareholders and holders of American Depository Receipts of the company.