TCS Buyback may add more booster to stock price
The announcement of buyback of TCS at 4500 per share was a commendable attitude towards the shareholders. The Board of Directors of Tata Consultancy Services Ltd, at its meeting held on January 12, 2022, has approved a proposal to buyback up to 4,00,00,000 (Four crores) Equity Shares of the Company for an aggregate amount not exceeding ₹18,000 crores, being 1.08% of the total paid-up equity share capital, at ₹4,500 per Equity Share.
The last record date for TCS buyback was January 20, 2022. Eligible shareholders can now apply for the buyback. This is TCS’ fourth and the biggest buyback exercise in the past five years. “The buyback is proposed to be made from the shareholders of the Company on a proportionate basis under the tender offer route using the stock exchange mechanism. The buyback size does not include transaction costs, applicable taxes, and other incidental and related expenses,” TCS has said in a statement on the outcome of the board meeting. The company has set 20 January (today) as the Record Date. Shareholders are required to hold shares of the company concerned in their demat account on this date.
And for fresh investment, investors can buy TCS stock for the short term for a 15% return. The share price of TCS is currently trading at 3800. If TCS share price shows some correction and if it comes closer to 3620-3650 then it will be considered as a good investment. Or if TCS share price trades at 3700-3750 level, then it can be considered a buy.
