Mumbai: Software major Tata Consultancy Services (TCS) said on Monday it will buy back up to 5.61 crore equity shares for Rs16,000 crore.
According to TCS, the equity share buy back decision was taken by its Board of Directors at a meeting held on Monday.
“The ‘Buyback Size’ being 2.85 per cent of the total paid up equity share capital, at Rs2,850 per equity share,” the company informed the BSE in a regulatory filing.
“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 in accordance with the provisions contained in the SEBI Regulations, 1998 and the Companies Act, 2013 and rules made thereunder,” the filing elaborated. The pre-buyback shareholding pattern as on Feb.17, 2017 showed that the Tata Group owned 73.31 per cent in the software major.
The company’s scrip price on the BSE gained 4.06 per cent or Rs97.85 per share to Rs2,506 per equity share from its previous close of Rs2,408.15.
India’s second-biggest IT services company behind Tata Consultancy Services (TCS) has been locked in a public war of words with the founders and former executives, who, led by NR Narayana Murthy, have raised concerns over various decisions taken by the board.
The founders, who still own 12.75 per cent of the firm, have questioned a pay rise granted to Chief Executive Vishal Sikka and the size of severance payouts given to others, including its former finance head Rajiv Bansal.