TCS repurchase of Rs 18,000 crore subscribed 5.5 times per day before closing

The Rs 18,000 crore share buyback program of Tata Consultancy Services, the second most valuable company in India, has attracted a large number of shareholders.

On Tuesday, 220 million shares were floated, 5.5 times the company intends to buy back. The leader in the Tata Group will buy back 40 million shares, or 1.08 percent of its shares. The buyback is done at Rs 4,500 per share – more than 21 per cent premium over the current market price. TCS shares recently closed at Rs 3,701. The tender trail buyback process, which began on March 9, ends tomorrow.

According to an analysis by Edelweiss Alternative Research, the acceptance rate for retail investors could be 14.3 percent. In other words, 1 share can be accepted in the repurchase for every 7 shares offered. For non-individual investors, only one share can be accepted for every 108 shares offered in the tender.

Acceptance rate is lower than previous repurchases made by TCS.

In 2020, TCS made a Rs 16,000 crore buyback where acceptance was 100 per cent for retail and 10 per cent for non-retail investors, according to the Edelweiss study.

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