TCS to begin 4th and biggest buyback of shares from 9 March: All you need to know

Tata Consultancy Services (TCS) will begin buying back its shares from tomorrow, 9 March. The Rs 18,000-crore buyback, which is the fourth and biggest such exercise by the company, according to an Economic Times report, will continue till 23 March.

The shares of the TCS buyback will be priced at Rs 4,500 per equity, according to a notice on the IT company’s website. View the notice here .

The company is planning to buyback 4 crore shares under this scheme. The offer price represents a premium of 18.19 percent and 18.21 percent over the closing price of the company’s share on National Stock Exchange (NSE) and Bombay Stock Exchange as on 6 January this year.

According to the  updated schedule given on the TCS website, the deadline of settlement of bids on the Stock Exchanges is 1 April.

Here is all you need to know about the TCS buyback scheduled to take place tomorrow:

Who is eligible? All investors who held shares in TCS on 23 February this year, can offer shares to the company. TCS has defined the categories of general shareholders and reserved category for small shareholders.

A small shareholder are defined as an investor who hold equity shares with a market value of not more than Rs 2,00,000.

The company will buyback 60,00,000 shares from the small shareholders. The ratio will be “1 equity share for every 7 equity shares held on the record date” as per reports.

For General investors the buyback ratio will be 1 share for every 108 equity shares.

According to an Economic Times report, shareholders can offer more shares than they are entitled, but these will be considered if all shareholders do not offer their entitled quota, leading to a shortfall in the number of tendered shares.

How will the buyback process occur? A separate acquisition window for the buyback will be available for shareholders for the process. The Bombay Stock Exchange has been decided upon as the designated stock exchange.

According to the TCS notice, shareholders need to send the original Equity Share certificate(s) and documents mentioned by the company, by courier, hand delivery or speed post to the registrar of the buyback at the address given in the document or its collection centre. The documents must be submitted by the last date of the buyback or 23 March.

Other details: The promoter companies of TCS, Tata Sons and Tata Investment Corporation Ltd, also intend to participate in the buyback offer.

Link Intime is the registrar of the buyback, while JM Financial is the manager.

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