TCS has subscribed for 18,000 kroner to buy back 7.5 times, offering 300 million shares

The Rs 18,000 crore share buyback scheme of Tata Consultancy Services, India’s second most valuable company, has been subscribed more than 7.5 times. According to the data provided by the stock exchanges, 300 million shares were offered against 40 million shares offered.

The Tata Group’s flagship company will amortize 1.08 per cent of equity under the buyback programme. The buyback is made at Rs 4,500 per share – more than a 21 per cent premium over the last closing of TCS. TCS shares finally closed at 3,708 rupees, 0.2 per cent higher than the previous day’s close. The bid-track buyback process, which began on March 9, expired on Wednesday.

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.

Dear Reader,

Business Standard has always strived to provide the latest information and commentary on developments that matter to you and that have broader political and economic implications for the country and the world. Your continued encouragement and feedback on how we can improve our offerings has made our resolve and commitment to these ideals even stronger. Even during these challenging times brought about by Covid-19, we continue our commitment to keeping you updated with trusted news, authoritative opinions and insightful commentary on relevant topical issues.
However, we have a request.

As we battle the economic impact of the pandemic, we need your support even more, so we can continue to bring you more quality content. Our subscription form has seen an encouraging response from many of you, who have subscribed to our content online. Further subscribing to our online content can only help us achieve our goals of providing better and more relevant content. We believe in free, fair and credible journalism. Your support with more subscriptions can help us practice the journalism we are committed to.

Support quality press and Subscribe to Business Standard.

digital publisher

Leave a Reply

Your email address will not be published. Required fields are marked *