Mumbai, India – Tata Consultancy Services (TCS), one of India’s leading IT giants, has revealed plans to deliberate on a potential buyback of equity shares during an upcoming board meeting scheduled for October 11, 2023, according to an official statement released by the company. This decision comes amidst a backdrop of positive market sentiment as TCS shares concluded trading on the National Stock Exchange (NSE) nearly 1 percent higher at Rs 3,621.25.
The TCS board’s discussions regarding the share buyback proposal will coincide with the highly anticipated announcement of the company’s financial results for the second quarter of the fiscal year 2023-2024.
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TCS, a pioneer in the IT industry, had previously executed a share buyback program in 2022, repurchasing shares with a total value of Rs 18,000 crore. This initiative involved the acquisition of 4 crore shares, each priced at Rs 4,500 per share, with a face value of Re 1 per share.
The decision to consider another share buyback underscores TCS’s commitment to delivering value to its shareholders and signifies the company’s confidence in its financial stability and future growth prospects.
Notably, this move by TCS follows in the footsteps of other major players in the Indian IT sector who have recently completed similar share buybacks. In February 2023, Infosys successfully concluded its share buyback program, acquiring 6.04 crore of its own shares for Rs 9,300 crore. The average buyback price of Infosys was Rs 1,543.1, compared to the maximum buyback price of Rs 1,850 per share.
In June of the same year, Wipro, India’s fourth-largest IT firm, announced its largest-ever share buyback worth Rs 12,000 crore. The company recorded an acceptance ratio of 77.40 percent among retail participants, highlighting strong investor interest in such initiatives.
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Investment experts caution that while share buybacks can offer an attractive proposition for investors, decisions regarding investments should be made prudently. Potential investors are advised to consult with certified financial experts and conduct thorough due diligence before making any investment decisions.
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As TCS contemplates its next move, investors and market watchers will be keenly awaiting the outcome of the board meeting on October 11th, which could have significant implications for the company’s financial strategy and shareholder value.