[ad_1]
The Rs 18,000-crore share buyback programme of Tata Consultancy Services, India’s second-most valuable firm, has drawn a large number of shareholders.
On Tuesday, 220 million shares were tendered, 5.5 times the company intends to repurchase. The Tata group flagship firm will buy back 40 million shares, or 1.08 per cent of its equity. The buyback is being done at Rs 4,500 per share—over 21 per cent premium to current market price. Shares of TCS last closed at Rs 3,701. The tender route buyback, which commenced on March 9, ends tomorrow.
As per an analysis done by Edelweiss Alternative Research, the acceptance ratio for retail investors could be 14.3 per cent. In other words, one share could get accepted in the buyback for every 7 shares tendered. For non-retail investors, only one share could get accepted for every 108 shares 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.
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
[ad_2]
Source link