Shares of India's biggest IT services player Tata Consultancy Services (TCS) rose nearly 4% today after the firm fixed November 25 as the record date for its Rs 17,000-crore share buyback plan. The record date is set to determine the eligibility of shareholders, who can participate in the process. The IT firm announced its share buyback plan at a price of Rs 4,150 per share through tender offer on October 11.
TCS stock gained 3.74% to an intraday high of Rs 3526.45 against the previous close of Rs 3399.30 on BSE. Market cap of the firm rose to Rs 12.89 lakh crore on BSE. In terms of technicals, the relative strength index (RSI) of the TCS stock stands at 49.2, signaling it's trading neither in the overbought not in the oversold zone. TCS shares are trading higher than the 5 day, 10 day, 20 day, 50 day, 100 day, 150 day and 200 day moving averages.
The IT stock has risen 5.09 per cent in one year and risen 8.10 per cent since the beginning of this year.
The share opened at Rs 3467 on BSE. Total 1.55 lakh shares of the firm changed hands amounting to a turnover of Rs 53.97 crore on BSE. The share hit a 52-week high of Rs 3680 on October 9, 2023 and a 52-week low of Rs 3,070.30 on April 17, 2023. The buyback was announced at a premium of 14.95 per cent to October 11 closing price of Rs 3,610.20.
The company announced a buyback of up to 4.09 crore shares at a price of Rs 4,150 per share. This represents 1.12% of the total paid-up equity share capital of the company.
This was the fifth time TCS would be conducting a share buyback programme. The previous four buybacks were also done through the tender offer route.
In January last year, TCS announced a share buyback worth Rs 18,000 crore at Rs 4,500 apiece. In December 2020, the IT major announced a buyback worth Rs 16,000 crore at a price of Rs 3,000 per share. The company carried out the other two buybacks, both worth Rs 16,000 crore each, in 2017 and 2018.
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