A share buyback is a corporate action where a company buys back its own shares from its shareholders usually at a premium to the prevailing market price. TCS is the largest IT company in India and also one of the world’s largest providers of IT services.
Retail investors looking for short term opportunity can buy the shares of TCS from the open market and tender them in the buy-back offer,” said Motilal Oswal. Based on the share buyback price of ₹4,500, one can buy upto 44 shares ( ₹2,00,000/ ₹4,500) to be eligible for retail category, the brokerage highlighted.
Who is eligible for TCS buyback?
1. Firstly, to be eligible for the buyback the investor should have shares of Tata Consultancy Services Limited (TCS) in demat or physical form as on record date [23.02. 2022] 2.
Is TCS buyback good?
“TCS buyback might create a good opportunity for market participants with a short-term horizon, as the buyback price is 22% higher than Friday’s close on 11th Feb 2022, and it will have a good acceptance ratio.
The buyback price is at Rs 4,500, meaning a premium of 20 per cent from current prices. TCS has fixed February 23 as the record date for buyback. The IT sector giant had announced buyback of up to 4 crore equity shares spending Rs 18,000 crore. About 15 per cent of the offer is reserved for retail shareholders.
Is buyback Good for investors?
In terms of finance, buybacks can boost shareholder value and share prices while also creating a tax-advantageous opportunity for investors. While buybacks are important to financial stability, a company’s fundamentals and historical track record are more important to long-term value creation.
What is TCS buyback record date 2020?
Buy Back Offer Deal:
|Buyback Type:||Tender Offer|
|Buyback Record Date:||Nov 28 2020|
|Buyback Opening Date:||Dec 18 2020|
|Buyback Closing Date:||Jan 01 2021|
|Buyback Offer Amount:||₹ 16000 Cr|
A stock buyback, also known as a share repurchase, occurs when a company buys back its shares from the marketplace with its accumulated cash. A stock buyback is a way for a company to re-invest in itself. The repurchased shares are absorbed by the company, and the number of outstanding shares on the market is reduced.
Is TCS a good buy now?
Retail investors with a long-term positive view on TCS and its financials should ideally hold the stocks and not tender them now. The price is 16.7% higher compared to its last traded price (Rs 3,857) of the stock on the Bombay Stock Exchange when this buyback was announced.
When to apply for TCS buyback?
You will be eligible for buyback only if the shares are in your holdings as of February 23, 2022. This means you should have bought the stock on Feb 21st 2022 or earlier. The schedule for TCS buyback is not announced.