TCS Share Buyback on 25 November: TCS share buyback will take place on 25 November. The company will buy shares worth about Rs 17 thousand crore from the market by spending Rs 4150 per share.
Share Buyback on 25 November: The country’s largest IT company Tata Consultancy Services (TCS) had decided to do share buyback and has also announced the date for it. TCS has fixed November 25 as the date for the share buyback plan. In the information given to the stock exchange, TCS said that shares worth Rs 17 thousand crore will be purchased from the people in the buyback plan.
The company has fixed the price of one equity share at Rs 4150. The company’s shares closed at Rs 3399 on Bombay Stock Exchange (BSE) on Wednesday. The market capitalization of TCS is more than Rs 13 lakh crore. There are approximately 6 lakh employees in the company.
TCS buyback will happen for the fifth time
The company has brought a buyback plan for the fifth time in the last 6 years. Earlier in January 2022, TCS had bought back shares worth Rs 18 thousand crores. In the year 2023, the value of the company’s shares has increased by about 11 percent. If a company buys back its shares from the market then it is called buyback.
Through this the company wants to increase the market value of its shares. The company had announced last month that it would buyback about 4 crore equity shares from the market. TCS has made a net profit of Rs 11,432 crore in the second quarter of the financial year.
What is the benefit of buyback?
Share buyback is a strategic decision. Due to this, the company gives a message to the market that its financial position is strong. Due to buyback, the number of shares of the company present in the market decreases and the value of the stock increases. Due to this, the confidence of investors in the company increases.
Besides, they also earn huge income. Shareholders can sell all or some of their shares in this buyback. They also become rest assured about the financial condition of the company. Also, after buyback decisions, it is often seen that the price of the company’s shares rises. This decision of TCS can also give new energy to the lagging IT sector.
