Tata Consultancy Services Ltd. has set Nov. 25 as the record date for its Rs 17,000 crore buyback.
India's largest IT services firm will buy back up to 4.09 crore shares, representing 1.12% of the total paid-up equity share capital, it announced in October. The offer is the company's fifth such action since 2017.
The buyback price is set at Rs 4,150 apiece. The stock closed at Rs 3,408.60 apiece on Wednesday, ahead of the announcement.
The scrip has declined 3.9% since the buyback announcement on Oct. 11.
The buyback offer price represents a premium of 20.45% and 20.26% to the volume weighted average market price of the equity share on BSE and NSE, respectively, during the three months preceding the date of intimation of the buyback, according to the shareholder report.
Currently, the promoter stake in the IT giant is 72.30%.
The buyback is proposed to be made from existing shareholders on a proportionate basis, under the tender offer route, using the stock exchange mechanism.
The action is part of the company's way to ensure value enhancement for shareholders.
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