Monday, 20 February 2017

Tata Consultancy Services Board Will Be Meeting Today To Consider A Buyback

Tata Consultancy Services' Board will be meeting today to consider a buyback. The company's networth stands at USD 12.4 billion.

According to buyback rules, if TCS wants to avoid a shareholder nod, it can opt for a 10 percent buyback of shares which would be around USD 1.24 billion. With a shareholder approval, the company can go up to a 25 percent share buyback which will be USD 3.1 billion.

A 25 percent buyback would not be difficult for the company, whose cash on books currently is at Rs 43,169 crore. 

Promoters of the company, who hold around 73.3 percent stake, are likely to participate in the buyback. If they don't, their total holding will cross the 75 percent mark, which is against Sebi rules.

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