TCS Announced Share Buy Back Worth Rs 16,000 Crore
The largest software exporter TCS announced an Rs 16,000-crore share buyback, second in as many years, as part of its long-term capital allocation policy of returning excess cash to the shareholders.
Within minutes of the announcement, the shares surged 3 percent in late trade hitting a new lifetime high of Rs 1,849 on the BSE, taking its market capitalization to a record Rs 7.06 trillion. The counter closed Rs 1,841.45 , up 2.75 percent in a dull trade.
The company is offering to buy back shares at a premium of over 15 percent at Rs 2,100 a share.
“The capital allocation policy is paramount to the company. We’ve always believed in rewarding the shareholders. We’ve steadily increased our payout to shareholders and now we are at the upper end of the band of 80 to 100 percent bad,” managing director and chief executive Rajesh Gopinathan told media after the 50th AGM.
The company plans to buy back 7.61 crore shares or 1.99 percent of the total paid-up equity share capital through the exercise, which follows a similar Rs 16,000-crore programme undertaken last fiscal.