TCS share buyback subscribed 7.5 times on final day

The share buyback of India's largest software exporter Tata Consultancy Services was subscribed more than 7.5 times on Wednesday - the last day for offering the shares.

Investors tendered 30.12 crore shares in the Rs 18,000-crore buyback, which started on March 9, against the company's offer of four crore shares.

 The strong interest in the buyback came as the offer price of  Rs 4,500 was 21% above the current stock price. Shares of TCS closed at Rs 3,712.40 on Wednesday.

The ratio of buyback was 1 equity share for every 7 equity shares held on the record date in the reserved category for small shareholders. For general category shareholders, the buyback ratio was 1 for every 108 shares held.

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This is the fourth share buyback by TCS. Earlier in January 2021, the company concluded a share buyback worth about Rs 16,000 crore. Tata Sons had tendered shares worth Rs 9,997.5 crore.

In 2017 and 2018, TCS carried out two share buybacks worth Rs 16,000 crore each. In 2018, TCS bought back the stock at Rs 2,100 per share, while in 2017, the price was  Rs 2,850 per share.

Ahead of the buyback, nine promoter entities held 72.19 per cent stake in TCS. Banks, mutual funds and insurance companies owned 7.8 per cent while FPIs and FIIs held 15.23 per cent stake in the firm. Retail investors held about 3.88 per cent.

The buyback is in addition to Rs 7 per share third interim dividend that the cash-rich company announced on January 12 this year.

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