The record date for this buyback was set as November 25.
Tata Consultancy Services (TCS) is going to conclude its Rs 17,000 crore share buyback offer on Thursday. Under the offer, which kicked off on December 1, the IT services giant will purchase back nearly 4,09,63,855 equity shares with a face value of Re 1 each, priced at Rs 4,150 per piece.
A share buyback means that the company would purchase all the shares from the eligible and participating shareholders as of the record date at a predetermined price (Rs 4,150 per piece as fixed by TCS). The record date for this buyback was set as November 25.
Small shareholders, or those having an investment of less than Rs 2 lakh, have been assigned an entitlement ratio of 1 equity share for every 6 shares held by them as of the record date. The entitlement ratio suggested by the company stood at 17 per cent for such small investors. As the total investment can't exceed Rs 2 lakh for retail investors, those who hold up to 57 shares of the company as of the record date would fall into this category.
Regarding the remaining (general) shareholders of TCS, the entitlement ratio set by the company is at 2 shares for every 209 shares held by them as of the record date.
According to the BSE data, a total of 21,74,43,695 TCS shares were subscribed at the closing of Wednesday, December 6. The issue price of Rs 4,150/share is at a premium of 15 per cent compared to the previous session's closing price of Rs 3,603.35 per piece on BSE.
The TCS share buyback represents a total issued and paid-up equity share capital of 1.12 per cent of the company, as of September 30, 2023.
Shares of TCS were trading 0.65 per cent higher at Rs 3,626.75 per piece on BSE at 1:25 PM.