TCS Buyback: This Tata company can announce buyback with second-quarter results, know details
TCS Buyback: In share buyback, a company buys back shares from its shareholders. Typically in a buyback, shares are purchased at a premium to the market, giving shareholders the option to exit all or part of the stock at a profit. Through buybacks, management signals confidence in its business.
Tata Consultancy Services (TCS), the country's largest IT company, is set to announce its fifth share buyback in six years. This will be announced along with the announcement of the company's second-quarter results. This buyback of the company will come at a higher price than the share price in the market.
Earlier, TCS has bought back its shares in 2017, 2018, 2020 and 2022. The IT giant, worth over Rs 13 lakh crore, has bought back shares worth Rs 66,000 crore in the last six years.
In share buyback, a company buys back shares from its shareholders. Typically in a buyback, shares are purchased at a premium to the market, giving shareholders the option to exit all or part of the stock at a profit. Through buybacks, management signals confidence in its business.
TCS bought back its shares for the first time in 2017. The company announced a buyback of Rs 16,000 crore in February 2017 at an 18 percent premium to current prices. This was followed by two buybacks worth Rs 16,000 crore in June 2018 and October 2020 at 18 and 10 per cent premium respectively. The last buyback was announced in January 2022. The company had decided to buy shares worth Rs 18,000 crore at a 17 percent premium.
