TCS Rs 18,000 cr buyback subscribed 7.5x, with 300 mn shares tendered

The Rs 18,000-crore share buyback programme of Tata Consultancy Services, India’s second-most priceless agency, was subscribed over 7.5 occasions. According to knowledge supplied by stock exchanges, 300 million shares had been tendered in opposition to the provide dimension of 40 million shares.

The Tata group flagship agency will extinguish 1.08 per cent of its fairness beneath the buyback programme. The buyback is being carried out at Rs 4,500 per share—over 21 per cent premium to TCS’s final shut. Shares of TCS final closed at Rs 3,708, up 0.2 per cent over the day past’s shut. The tender route buyback, which commenced on March 9, ended on Wednesday.

As per an evaluation carried out by Edelweiss Alternative Research, the acceptance ratio for retail buyers could possibly be 14.3 per cent. In different phrases, one share might get accepted within the buyback for each 7 shares tendered. For non-retail buyers, just one share might get accepted for each 108 shares tendered.

The acceptance ratio is decrease than earlier buybacks carried out by TCS.

In 2020, TCS did a Rs 16,000-crore buyback the place the acceptance ratio was 100 per cent for retail and 10 per cent for non-retail buyers, as per an Edelweiss research.

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