TCS or Tata Consultancy Services shares soared more than 5 per cent to scale a fresh high on Thursday, a day after the IT bellwether announced a stock buyback worth up to Rs 16,000 crore but missed analysts' estimates for its net profit in the July-September period. TCS shares jumped by Rs 137.60 - or 5.03 per cent - to a record Rs 2,875 apiece on the BSE in morning deals. At 9:50 am, TCS shares traded 4.44 per cent higher at Rs 2,858.95 on the bourse, outperforming the benchmark Sensex index which was up 1.22 per cent. (Track TCS Stock Price)
In a regulatory filing after market hours on Wednesday, TCS - the country's second most valuable company - said it will buy back up to 5.33 crore shares at Rs 3,000 apiece, marking a 9.7 per cent premium to their closing price on Wednesday.
Analysts say the timing of the share buyback has been partly triggered by the ongoing feud between Tata and Shapoorji Pallonji groups.
The Shapoorji Pallonji group, which has an 18 per cent stake in Tata Sons - the holding company of Tata group, recently said "a separation from the Tata Group is necessary".
TCS said its consolidated net profit was at Rs 7,475 crore in the July-September period, up 6.66 per cent compared to the previous quarter. Its net profit missed analysts' estimates.
The IT major named Samir Seksaria as chief financial officer, to replace V Ramakrishnan, who will retire in April next year.
At the highest intraday level on Thursday, Tata Consultancy Services' market capitalisation - or market value - touched Rs 10.79 lakh crore.
On Monday, the company's market value had touched the Rs 10 lakh crore mark for the first time, after it mentioned its board would consider a buyback plan. That made TCS the only domestic firm after Reliance Industries to cross the milestone.