Tender Offer | ₹17,000.00 Crores | Listed at BSE, NSE | Fri, Dec 1, 2023 - Thu, Dec 7, 2023
Tata Consultancy Services Ltd. Buyback is a tender offer for the repurchase of up to 4.10 crore equity shares at a buyback price of ₹4150 per share with a face value of ₹1 per share, aggregating to ₹17,000.00 crores.
The record date for determining eligible shareholders is Nov 25, 2023. Shareholders holding equity shares as on the record date are eligible to participate in the buyback.
The buyback opens on Dec 1, 2023 and closes on Dec 7, 2023, with the last date for receipt of tender forms being Dec 7, 2023.
The finalisation of buyback acceptance is expected on Dec 13, 2023, followed by settlement of bids on Dec 14, 2023.
JM Financial Ltd. is the Manager to the Buyback and MUFG Intime India Pvt.Ltd. is the Registrar and JM Financial Limited is the Registered Broker to the Buyback.
Investors are advised to refer to the Tata Consultancy Services Ltd. Letter of Offer for detailed information, including eligibility criteria, entitlement ratio, acceptance methodology, and tax implications.
Offer Opening Date
Fri, Dec 1, 2023
Offer Closing Date
Thu, Dec 7, 2023
Buyback Price
₹4150 per share
Record Date
November 25, 2023
| Buyback Date | Share % of paid-up capital bought back | Share Buyback price | Total Buyback Amount | Acceptance Ratio (Retail) |
|---|---|---|---|---|
| May 18, 2017 | 2.85% | Rs 2,850.00 | Rs 16,000.00 Cr | NA |
| Sep 06, 2018 | 1.99% | Rs 2,100.00 | Rs 16,000.00 Cr | NA |
| Dec 18, 2020 | 1.42% | Rs 3,000.00 | Rs 16,000.00 Cr | NA |
| Mar 09, 2022 | 1.08% | Rs 4,500.00 | Rs 18,000.00 Cr | 24.00% |
| Dec 01, 2023 | 1.12% | Rs 4,150.00 | Rs 17,000.00 Cr | 35.00% |
| Category | Entitlement Ratio of Buyback | Shares Offered |
|---|---|---|
| Reserved Category for Small Shareholders | 1 Equity Shares out of every 6 Fully paid-up Equity Shares held on the Record Date. | 6,144,579.00 |
| General Category for all other Eligible Shareholders | 2 Equity Shares out of every 209 Fully paid-up Equity Shares held on the Record Date. | 34,819,276.00 |
Tata Consultancy Services Limited's revenue increased by 16.6% and profit after tax (PAT) rose by 2.41% between the financial year ending with March 31, 2023 and March 31, 2022.
| Period Ended | 30 Sep 2023 | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
| Assets | ||||
| Revenue | 103,685.00 | 195,682.00 | 167,827.00 | 141,363.00 |
| Profit After Tax | 21,413.00 | 39,106.00 | 38,187.00 | 30,960.00 |
| Net Worth | 83,926.00 | 74,538.00 | 77,173.00 | 74,794.00 |
| Reserves and Surplus | ||||
| Total Borrowing | ||||
| Amount in ₹ Crore | ||||
Tata Consultancy Services is an organization offering business solutions, IT services, and consultancy services for more than 5 decades. TCS is one of the largest companies being the subsidiary of TATA group. The company has employed more than 614000 trained consultants across 55 countries out of which 35.7 % are women. TCS's continuous endeavors to protect against climate change have led the company to earn a place in leading sustainability indices such as the MSCI Global Sustainability Index and the FTSE4 Good Emerging Index. The company helps its clients to transform and accelerate their business growth through its powerful business solutions.
The company provides business solutions in multiple sectors such as education, healthcare, banking, insurance and healthcare.
| Month | High Price | Low Price | Average Price |
|---|---|---|---|
| Oct-2023 | 3,637.25 | 3,337.75 | 3,497.58 |
| Sep-2023 | 3,606.15 | 3,379.20 | 3,527.62 |
| Aug-2023 | 3,483.75 | 3,357.05 | 3,418.81 |
| Month | High Price | Low Price | Average Price |
|---|---|---|---|
| Oct-2023 | 3,638.35 | 3,336.75 | 3,497.80 |
| Sep-2023 | 3,606.15 | 3,379.20 | 3,528.02 |
| Aug-2023 | 3,484.05 | 3,356.80 | 3,418.45 |
The current buyback is in line with the Company's shareholders-friendly capital allocation practice of returning excess cash to the shareholders thereby increasing shareholder value in the longer term and improving the return on equity
Tata Consultancy Services Ltd.
TCS House,
Raveline Street
Fort, Mumbai 400 001
Mumbai, Maharashtra, 400001
Lead Manager(s)
Registered Broker
The Tata Consultancy Services Buyback 2023 opens on December 1, 2023, and closes on December 7, 2023.
Last date to be eligible to participate in buyback is November 24, 2023.
The Tata Consultancy Services Buyback 2023 is a Tender Offer.
Tata Consultancy Services Buyback 2023 Schedule
| Buyback Opening Date | December 1, 2023 |
| Buyback Closing Date | December 7, 2023 |
| Last Date for receipt of Tender Forms | December 7, 2023 |
| Finalisation of Buyback Acceptance | December 13, 2023 |
| Last Date for settlment of bids | December 14, 2023 |
| Last Date for Extinguishment of Shares | December 26, 2023 |
The Tata Consultancy Services Buyback 2023 is being offered at Rs ₹4150 per share.
| Category | Entitlement Ratio of Buyback | Shares Offered |
|---|---|---|
| Reserved Category for Small Shareholders | 1 Equity Shares out of every 6 Fully paid-up Equity Shares held on the Record Date. | 6,144,579.00 |
| General Category for all other Eligible Shareholders | 2 Equity Shares out of every 209 Fully paid-up Equity Shares held on the Record Date. | 34,819,276.00 |
The issue size of Tata Consultancy Services Buyback 2023 is 4,09,63,855 equity shares at ₹4150 per share aggregating up to ₹17,000.00 Crores.
The current buyback is in line with the Company's shareholders-friendly capital allocation practice of returning excess cash to the shareholders thereby increasing shareholder value in the longer term and improving the return on equity
All the eligible Shareholders of the Company holding either Physical Shares or Demat Shares as on the Record Date can participate in the buyback offer through their Stock Broker.
The eligible shareholder holding the shares in Demat form needs to inform their broker the details of the Equity shares they wish to tender in the Buyback Offer. The shareholder needs to transfer the tendered shares to a Special account of the clearing corporation. The broker, in turn, would place an order on the stock exchange for the buyback.
The eligible shareholder holding the shares in physical form needs to approach their broker with original share certificates and supporting documents. Upon completion of document verification, the broker places an order on the stock exchange and submits the original share certificate and TRS to the registrar.
The tender form and TRS are optional in the case of Demat shares but mandatory in the case of physical shares.
The Tata Consultancy Services Buyback 2023 offers an opportunity for the shareholders to exit their positions at a premium price. In case you stay invested you would have an increased percentage of shareholding in the company and improved earnings per share. Thus, one should understand the company fundamentals along with one's need, goals, and risk appetite to decide if one wants to stay invested or participate in the buyback offer.
