TCS to buyback up to Rs7cr shares from Sept. 6-21
India’s largest software services firm Tata Consultancy Services is all set to buyback up to 7cr fully paid-up equity shares from Sept. 6th to 21st. This will reportedly be the Mumbai-headquartered company’s third buyback in 2yrs.
In a BSE filing, the company clarified that as per the Sebi’s regulations, the company will dispatch the letter of offer to eligible shareholders on or before September 4.
Tata Group’s investment holding firm reportedly plans to use the cash from the TCS buyback to fund investment programmes of other group companies as they expand their business presence.
A buyback is a mechanism through which a company buys a specific amount of its own outstanding shares. This reduces the number of shares in the open market. Moreover, it helps a company to improve the earnings per share and return on equity.