TCS share holders, TCS announced buy back - YP Buzz Finance

 YP Buzz - 

       IT services giant Tata Consultancy Services (TCS) today said company members had approved a Rs. 18,000 crore rebate by passing a special resolution by postal vote.


Tata Consultancy Services

"Company members have authorized a refund by passing a special decision by post," the company said in a stock file.

The Company has set Wednesday, February 23, 2022, as the date of the record for the purpose of determining eligibility and the names of eligible shareholders who will be eligible to participate in the asset recovery.

On January 12, 2022, the board of directors of TCS announced the purchase of fully paid shares of up to 4,00,00,000 face value of Re 1 per Rs. 4,500 per equity share for a combined amount of ₹. 18,000 crore.

The TCS share closed at Rs. 3,693, down Rs. 77.35 or 2.05 percent, on the NSE on Friday.

Tata Sons, TICL aims to participate in refunds

Last month Tata Consultancy Services (TCS) said its promoters Tata Sons and Tata Investment Corporation Ltd (TICL) also aimed to participate in the proposal. Tata Sons owns approximately 266.91 crore shares in the company and intends to provide 2.88 crore shares for purchase, while TICL, with 10,23,685 shares, awarded tenders for 11,055 shares.

The previous TCS purchase offer of approximately Rs. 16,000 crore was opened on December 18, 2020, and closed on January 1, 2021, when the holding company Tata Sons acquired shares worth Rs. 9,997.5 crore.

More than 5.33 million equity shares were purchased at the time (donation value was R3,000 each) and in total, 3,33,25,118 Tata Sons shares were accepted under the purchase contribution.

Share purchases and what it means to investors:

A reseller, or reseller, is where a company buys its shares from investors or participants. It can be seen as an alternative, which pays a tax return to shareholders.

Buying back is attractive in terms of tax even after considering a 10% tax on long-term profits (LTCG).

Usually, companies go out of their way to buy shares if they wish to increase demand in the market. The purchase of shares reduces the number of shares distributed, which may increase the share price and earnings per share (EPS).

When a company buys shares, that results in a decrease in the number of remaining shares and the cash base. At that level, it improves the company’s EPS and ROE. When the EPS goes up, it is assumed that P / E is always the stock price should go up.

In general, Indian IT companies such as Infosys, TCS, Wipro and HCL Tech are costly and costly. It is therefore better to return the money to the shareholders with the purchase.

Thanks & Regards

 YP Buzz

Post a Comment