The timeline for Tata Consultancy Services' (TCS) share purchase program has been made public. It will start on December 1 and end on December 7. At a price of Rs. 4,150 per share, shareholders may offer their shares to the corporation.
The entitlement ratio for smaller shareholders with investments under Rs. 2 lakh is one equity share for every six shares held on November 25, the record date. This ratio is equivalent to about 17%. For every 209 shares held, two additional eligible owners are entitled to shares.
The Rs. 4,150 buyback price represents a 20% premium over the closing BSE price of Rs. 3,457.60 on Friday. The stock increased by 0.6% during the day to trade at Rs. 3,478.80.
TCS expects the repurchase to enhance its net value from 49.89% to 62.56% and to increase its earnings per share (EPS) from Rs. 58.52 to Rs. 59.18 on a standalone basis.
If all shareholders fully exercise their buyback rights, the promoters' combined stake will increase slightly from 72.3% to 72.41%.
Tata Sons and Tata Investment Corporation, two holding businesses in the Tata Group, have indicated interest in taking part in the repurchase, with the possibility of submitting a maximum of 2,96,15,048 equity shares collectively. In total, 4,09,63,855 shares are being repurchased.
TCS intends to use internal earnings and/or available excess money to finance the buyback.
