TCS shareholders approve share buyback plan
Shares of Tata Consultancy Services (TCS), edged up after India’s largest software services exporter received shareholders approval to buyback shares up to Rs 16,000 crore.
Last month, TCS’ board of directors had approved a proposal to buy back up to 5,33,33,333 equity shares of the company for an aggregate amount of up to Rs 16,000 crore.
The voting, which started on October 20 and ended on November 18, saw 99.57% of the votes being cast in favour of the buyback offer. There was 100% voting in favour of the proposal by the promoters, 98.11% by public institutional shareholders and 98.43% by other shareholders.
The Mumbai-based company’s cash reserves stood at Rs 58,500 crore as of September 2020. Last year, TCS had offered a special dividend and this time it is undertaking a buyback.
In October last year, TCS’ board had declared a special dividend of Rs 40 per equity share. In 2018, TCS had undertaken a share buyback of about Rs 16,000 crore.
In 2017 too the company had conducted a similar share purchase exercise. The buyback offer was part of its long-term capital allocation policy of returning excess cash to shareholders.
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