TCS share repurchase of Rs 18,000 crore was subscribed 4.5 times per day prior to 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. To date, 180 million shares have been floated, which is 4.5 times the company intends to buy them back. The leader of the Tata Group will buy back 40 million shares, or 1.08 percent of equity. The buyback is made at Rs 4,500 per share – roughly 24 per cent over the current market price. TCS shares were last traded at Rs 3,633. 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, buy-backs can be accepted for every 7 tenders. For non-individual investors, only one share can be accepted for every 108 tenders.

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.

See link for the latest data

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