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The Rs 18,000-crore share buyback programme of Tata Consultancy Services, India’s second-most valuable firm, has attracted a large number of shareholders. So far, 180 million shares have got tendered, 4.5 times the company intends to repurchase. The Tata group flagship firm will buyback 40 million shares, 1.08 per cent of its equity. The buyback is being done at Rs 4,500 per share—nearly 24 per cent premium to current market price. Shares of TCS last traded at Rs 3,633. The tender route buyback, which commenced on March 9, ends tomorrow.
According to an analysis done by Edelweiss Alternative Research, the acceptance ratio for retail investors could be 14.3 per cent. In other words, one could get accepted in the buyback for every 7 tendered. For non-retail investors, only one share could get accepted for every 108 tendered.
The acceptance ratio is lower than previous buybacks done by TCS.
In 2020, TCS did a Rs 16,000-crore buyback where the acceptance ratio was 100 per cent for retail and 10 per cent for non-retail investors, as per an Edelweiss study.
See link for latest data
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