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Tata Consultancy Services Buyback (TCS Buyback) Detail

Established in 1968, Tata Consultancy Services (TCS) is an IT services, consulting, and business solutions provider. The company provides services grouped under the segments - Consulting and service integration, digital transformation services, cloud services, cognitive business operations, and products and platforms.
Key verticals the company serves are Banking, Financial Services, and Insurance (BFSI), Retail and Consumer Business, Communications, Media and Technology (CMT), Manufacturing, and Others.
TCS is a subsidiary of the Tata Group and is the largest IT services company in the world by market capitalization. TCS's geographic footprint covers North America, Latin America, the United Kingdom, Continental Europe, Asia-Pacific, India, the Middle East, and Africa. The company has over 556,986 employees around the globe and operates in 149 locations across 46 countries.

TCS Buyback Detail

Issue Period
Security NameTata Consultancy Services
Issue TypeTender Offer
Issue Size (Shares)4.00 Crores
Issue Size (Amount)₹18,000.00 Crores
Buyback Price₹4500 per share
Face Value
Listing At

Buyback Ratio

Buyback Ratio Calculation

TCS Buyback Documents

TCS Buyback Rating

25
4.3
Rating:Rated 4.3 stars
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TCS Buyback Reviews

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Company Contact Information

Tata Consultancy Services
9th Floor, Nirmal Building,
Nariman Point,
Mumbai - 400 021.

Phone:
Email:
Website: https://www.tcs.com/

TCS Buyback Registrar

TCS Buyback Manager

Lead Manager(s)

Find TCS Buyback Latest Update

TCS Buyback FAQs

The TCS Buyback open and close dates are not available as of now.

The TCS Buyback is a Tender Offer.

Sorry the TCS Buyback timelines are not available at this time.

The TCS Buyback is being offered at Rs ₹4500 per share per equity share.

Buyback Ratio Calculation

The TCS Buyback record date is not yet declared.

The issue size of TCS Buyback is of 4.00 Crores equity shares at ₹4500 per share aggregating upto ₹18,000.00 Crores.

The necessity for TCS Buyback is not yet declared.

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 TCS Buyback 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.


33 Comments

33. IPOINPUT  Jan 24, 2022 9:45:36 AM I Like It. | Report Abuse Reply
Hello!
What is the record date for TCS buyback? Was it January 21? I read one article in Financial express which states the record date is January 21
Please help.
33.3. IPOINPUT  Jan 24, 2022 12:27:42 PM I Like It. | Report Abuse
Thanks
33.4. K.Atar  Jan 26, 2022 10:51:52 AM I Like It. | Report Abuse
ipo ji,

Since you and many members are recently asking the same query, Here is the recap for the benefit of all members new on this BB page :

a) 20 January 2022 was record date for payment of third interim dividend of Rs 7 per share. The dividend will be paid on 07 February 2022.

b) Currently E voting for buyback approval is going on (commenced on Jan 14) which will end on 12th Feb.

c) The results will be announced on February 15, 2022, consequently they will be announce record date.
32. WhiteTiger  Jan 25, 2022 10:32:11 AM I Like It. | Report Abuse Reply
Hi, I have 70 shares of tcs. Amount is greater than 2L limit of retail category. Now what should I do? If I gave only 44 shares for buyback will I consider as retail category?
32.1. lokes  Jan 25, 2022 11:43:43 AM I Like It. 1 | Report Abuse
Retail/general category is decided as per value of shares held on record date.
So you can sell in open market remaining shares 2 days before record date to come in retail category. Or if you holding for longer term, you can participate in general category also. Acceptance will be more in retail category.
31. Harit  Jan 24, 2022 3:58:50 PM I Like It. 1 | Report Abuse Reply
Added 45 @3760 for bb only
31.3. lokes  Jan 25, 2022 10:45:11 AM I Like It. 1 | Report Abuse
@ankit: you could have added some shares today morning...i have given my view in this forum in post no. 21 in reply to @DuckkyDuck. you can check once.
Any addition below 3800 will be good anytime.
31.4. Harit  Jan 25, 2022 11:34:24 AM I Like It. 1 | Report Abuse
Bought 25 @3755
Now all in
All 4 accounts average 3790 with 44 each
Hope good budget
And AR @ 60% or more

I strongly believe this time AR not to be 100%

Lokesh ji, aniket ji share your thoughts on AR

This is my first attempt for secondary market and also for buyback

Thanks
30. Parth  Jan 25, 2022 4:06:17 AM I Like It. | Report Abuse Reply
I have a 3 share of tcs , what is chance of acceptance?
30.1. lokes  Jan 25, 2022 10:42:58 AM I Like It. | Report Abuse
2 or 3 will be accepted if you tender all 3 shares
29. v for vendetta  Jan 23, 2022 11:44:49 AM I Like It. | Report Abuse Reply
Can someone tell if Prostocks provide facility to tender shares in buyback?
29.4. lokes  Jan 24, 2022 9:46:11 PM I Like It. 3 | Report Abuse
Thanks @NKJ for informing. I couldn't got time today to call them and check.
Tomorrow i will try. Previously in Zerodha also, it was similar way, we need to send mail for buyback tender. Later they added this in their site itself for placing buyback orders.
29.5. v for vendetta  Jan 24, 2022 10:19:19 PM I Like It. 1 | Report Abuse
Thanks @nkj and Lokes,
Yes, I also got a chance to call prostocks and they told me same.
28. Malini  Jan 22, 2022 9:18:19 AM I Like It. 1 | Report Abuse Reply
Can someone confirm to me if we can place buyback orders without POA? I have been using edis for selling shares but this would be my first buyback.
28.3. investormahesh  Jan 22, 2022 5:29:42 PM I Like It. | Report Abuse
sorry, no idea about hdfc securities
28.4. RJ  Jan 24, 2022 9:46:44 PM I Like It. | Report Abuse
No
27. ramakrishna mallipudi  Jan 24, 2022 1:27:19 PM I Like It. | Report Abuse Reply
@KSRK SIR @LOKES

as a retail investor, how many shares have to buy from market

44 or 52 approximately?

Can you guide us
27.1. Arca  Jan 24, 2022 3:11:44 PM I Like It. 1 | Report Abuse
It is safe to go with 44. The criteria is as on record date ,the holding shares shares should be less than 2lakhs eg if stock price is 4000 on record date you can buy 50 shares. I would suggest you to go with 44.
27.2. RAMAKRISHNA S M  Jan 24, 2022 4:40:07 PM I Like It. | Report Abuse
Thq Very much

bought 44 @3774

if any more further drops, will add in future
26. Gopinathji  Jan 24, 2022 3:00:52 PM I Like It. 1 | Report Abuse Reply
Tcs fresh buy 30 Γ— 3749
25. IPOINPUT  Jan 24, 2022 9:58:45 AM I Like It. | Report Abuse Reply
What is the record date? Will I be eligible if I by today? Financial express says the record dats was January 20
24. Anchal  Jan 22, 2022 2:32:04 PM I Like It. | Report Abuse Reply
Hello All,
I have one question with retail quota.
I have total 9 demat accounts with 5 different PAN.
Now I am purchasing 45 shares in all 9 demat accounts to eligible myself for retail quota.
So whether I am eligible for all 9 demat accounts or only 5 with different PAN is eligible for this buyback?

Any help will be highly appreciated.
24.1. Asoke Sarkar  Jan 22, 2022 7:14:05 PM I Like It. 1 | Report Abuse
PAN wise
So category may change from retail to general for some cases.
24.2. lokes  Jan 23, 2022 7:58:15 PM I Like It. 1 | Report Abuse
@anchal: That 2 lakh retail category is applicable per person means per PAN. Any person can have many demat account and shares in multiple accounts so all those will be combined. Better to buy in 5 demat accounts only with different PAN.
23. Asoke Kumar Sarkar  Jan 19, 2022 9:47:57 PM I Like It. 2 | Report Abuse Reply
@ Ou Ai & IPO Mitra are profoundly knowledgeable persons in this subject.
I want to put some points for reconciliation.
1. Buyback avenue is used by many companies for manipulation of share price by creating a hype. Buying 1 - 1.5% of shares does not change the ground situation to a great extent. If the company wishes to equitable distribution of some fund in hand , it should take recouse to dividend. What is said hitherto does not apply to big and renouned companies like TCS, Infosys etc. Here it is to be seen as benefits to shareholders envisaged primarily for the long term holders but some opportunistic investors will flock to take the opportunity given to the retail holders who will hit and fly. So the idea that the long term holders will fly with this little benefit is not confirmed by thier behavioural pattern as is seen in earlier occasions. Nor some quarter's results can subside the fancy of such persons though there may be some minor melting.
2. What is the benefit we are actually running for?
It is about Rs 49 per share + tax about Rs 10 , So about Rs 59 outlay of the company . For retailers some additional benefits for extra acceptance.
3. The company could have paid dividend @ 59 using the same money , tax to be paid by the recipient. Payment of dividend reduces the book value and market value instantly , so it may be thought to be a partial realisation of the share but people forget it and though the book value does not repair until further addition of profits etc market value repairs and goes up.
4. In case of buyback, the persons who tender fly off with the available benefit but those who do not tender gets the benefit in the form of stake appreciation by increased book value,eps , perceived market value ,lower number of shares.
5.As to tax benefit, in case of tendering in buyback the exemption benefit is limited to buyback price less recorded price .Taxation on other parts that is recorded price less cost of acquisition (w.r.t grandfathering clause sec 112 if applicable ) remains as usual. So in this case if the recorded price is 4000 , tax is to be paid on 4000 minus cost of acquisition. This is a good benefit. If the person does not tender in buyback but sells after some time at 4500, full tax is chargeable.
Now long term holders if does not tender will hold the benefit of grandfathering clause and LTCG . If they sell and reenter may attract STCG.
6. As to grandfathering , closing price as on 31/01/2018 was about Rs3100 for the original holding which is protected. For bonus share issued thereafter 1:1 in May 2018 will be fully taxed (overall Ltcg exemption one lac) with cost of acquisition zero.
7. Those who enter only for buyback, should keep in mind that the ultimate gain or loss will depend on the entry price besides the AR .From declaration to ex-date minus 1, there are atleast five disceet phase of prices , the first one for trading and there after positioal trading and with the trading accumulation at convenient points.Alternately one may start buying in ones and twos after the initial dust is settled and wait for dip which is most likely to come by.
In this case dip may be extended to 3700 and even lower to 3600 in odd circumstances.
So calculated and patient approach is required to extract the best.
Thanks
23.12. investormahesh  Jan 22, 2022 11:05:07 PM I Like It. | Report Abuse
So u mean, let us say ex-1 price is 4200 then profit of Rs 300 per share is tax free? If someone's buying price is 3000 then he has to pay ltcg or stcg tax on profit of 1200 per share? But all other persons on this forum have been saying that entire profit from buy back is tax free. From all other persons i mean those who commented regarding taxation.
23.13. Investormahesh  Jan 23, 2022 1:05:16 AM I Like It. | Report Abuse
On business channels of tv experts say that promoters like buyback because they get tax free income but as per your statement only a part of buyback profit is tax free
22. RAJESH AGRAWAL  Jan 22, 2022 4:06:26 PM I Like It. | Report Abuse Reply
Sir
I have 200 share of tcs before record date bayback 2022.kya retail category m tender kare ya general category m kaise adhik profit hoga
General category m ya retail category m kya difference h please explain me in full detail
22.1. Asoke Sarkar  Jan 22, 2022 7:01:04 PM I Like It. 1 | Report Abuse
In retail category(total price less than 2 lac) chances may be about 3 to5 times more than general category depending on the ground situation. So if AR in retail is 60% (about 27 acceptance out of 45 to 47 shares ), in your category AR may be 12% to 20% hence acceptance of 24 to 40 shares.
You may tender all 200 shares to maximise the acceptance.
If you want to participate as a retailer , you are to sell about 155 shares before ex date. Now, Nasdaq is under pressure, so are the IT shares. So you can not sell at this point at good price. You will get atleast 20 days time to take decision in this matter.If the price goes beyond 4100, you may think for selling to enter in retail category and subsequent reentry at lower price once buyback date is over.
If you are a very long term investor, you may do anything you like.
21. DuckkyDuck  Jan 21, 2022 2:00:37 PM I Like It. | Report Abuse Reply
KSRK sir, lokes and others - Are you guys still accumulating TCS or already bought completely ? I bought 7 @3870. Today at 3830 its more attractive but dont have much fund now. Will buy once Nucleus funds release. Still more 38 shares i want to buy. Thinking that on budget or after budget it might fall more. What do you think, will it go below 3800?
21.4. Suneel  Jan 22, 2022 12:43:18 PM I Like It. 1 | Report Abuse
Thanks @Lokes,
If promoter is tendering his shares in buyback, then AR will be very less. If not, for stocks like TCS, general category will be much profitable.
21.5. Harit  Jan 22, 2022 1:23:08 PM I Like It. | Report Abuse
Bought 30 each in 4 accounts @avg.cost of 3800

Going Full force with 4 accounts and 44 shares
20. helloo  Jan 22, 2022 12:56:23 AM I Like It. | Report Abuse Reply
Anyone knows that single share tender from single PAN will be surely accepted or not in tcs buyback ?
20.1. lokes  Jan 22, 2022 12:42:28 PM I Like It. 1 | Report Abuse
yes i think single share tendered should be accepted in buyback.
19. RK Sharma  Jan 22, 2022 12:18:55 AM I Like It. | Report Abuse Reply
IF I HAVE 50 SHARES OF TCS ON RECORD DATE
CAN I ELIGIBLE FOR TENDER IN BYE BACK?
PLEASE REPLE.
I AM CONFUSED.
19.1. Asoke Sarkar  Jan 22, 2022 7:24:44 AM I Like It. 1 | Report Abuse
Yes; you can tender as many as you may have.
No confusion.
If the total price is less than 2 lac, you will come under retail category with prospect of larger benefit.
19.2. lokes  Jan 22, 2022 12:41:29 PM I Like It. 1 | Report Abuse
@RK sharma: yes as @asoke mentioned, you will be eligible for buyback with any number of shares and you can tender any no. of shares. You may sell 5 shares before record date to be sure to come under retail category where more shares will be accepted in buyback tender.
18. Asoke Sarkar  Jan 21, 2022 9:44:04 PM I Like It. 1 | Report Abuse Reply
@ Ou Ai and friends

Have anybody gone through the case of Shivam- RE ?
It has created a maiden trend in this parlance .
Any experience or take ?
17. Mitul  Jan 21, 2022 3:25:03 PM I Like It. | Report Abuse Reply
Today I came to know that my broker ( https://trade.myespresso.com/) is not providing any facility/help for Buyback bidding, so I want to know that what are the other options available with me for Buyback bidding ( on the day of Buyback).

please help
17.1. lokes  Jan 21, 2022 7:48:13 PM I Like It. 1 | Report Abuse
Open demat account with other broker and then buy from that demat account :)
Shares can be tendered via broker only. You can one more time check with your broker may be, mostly brokers allow. or you can open account in zerodha or groww or uptox etc etc Zerodha allows to tender from site itself, other brokers am not sure how. you can ask them before account opening.
16. Ashok  Jan 21, 2022 2:23:33 PM I Like It. | Report Abuse Reply
Till which date we can buy tcs to participate in buyback?
16.1. K.Atar  Jan 21, 2022 2:41:59 PM I Like It. | Report Abuse
Record date hasn't been announced yet by the co., so one may buy the shares if one would like to participate in the BB event (as per his convenience).

Thanks
16.2. lokes  Jan 21, 2022 2:52:35 PM I Like It. 1 | Report Abuse
Record date will be announced on 15th feb after evoting results and record date will be probably around 21st to 25th feb.
15. snipperRaj  Jan 19, 2022 7:58:13 PM I Like It. 1 | Report Abuse Reply
Is there any HNI category as part of general category in buyback?
Retail cap is 2 lakh. If i have more than 2 lakh worth of tcs share, let say 100 share, and i want to tender all, what could be estimated AR/ER based on previous buyback of tcs... or we cant apply in general category ?
15.2. Ramsan  Jan 20, 2022 10:29:46 PM I Like It. | Report Abuse
@lokes ji Im participating buyback frst time
Bought 4 shares @3850 today just to understand the process. How do I tender via email !? and when !?
15.3. lokes  Jan 21, 2022 1:16:40 PM I Like It. | Report Abuse
@ramsan: you can get more info on buyback from here:
https://www.chittorgarh.com/article/buyback-of-shares-meaning-procedure-and-taxation/517/
https://investorzone.in/everything-about-the-buyback-you-want-to-know/

you need to buy shares upto 2 days before record date (below 2 lakh value to be under retail category which has 15% reservation so generally more shares are accepted back by company in retail category)
you will get mail from registrar after record date is over for your eligibility and shares holding on record date. you can place order from your broker site for all shares as holded on record date as per mail. In buyback mail, dates will be mentioned for tender period upto which you can tender shares in zerodha. Also read below link info in zerodha. For other brokers, you can call them to know how to place order for tendering shares when buyback period opens.
https://support.zerodha.com/category/trading-and-markets/corporate-actions/articles/how-do-i-apply-for-buy-back
14. Asoke Kumar Sarkar  Jan 16, 2022 8:32:24 PM I Like It. 5 | Report Abuse Reply
As to TCS buyback, I am going to furnish some useful historical data for consideration.
However, at he outset there is no second thought for participation in the buyback in view of the historical high acceptance ratio beating all arithmetical connotation.
Arithmetically it looks meagre but eventually proves to be very profitable.
2017 buyback:-
16000 cr, at 2850/- (21.8% premium) , buyback size 5.61 cr (2.85%), subs was about 2.5 times for nii and retail , AR for retailer was about 50%.
2018 buyback:-
16000cr, @2100 , buyback size 7.61cr (1.99%) subs was about 1.75 times and AR for retailer was 100%
2020 buyback :-
16000 cr @3000 , buyback size 5.33 cr (1.42%) subs was about 1.6 times and AR for retailer was 100 %
From this data it is clear that the retailers are not that much interested to participate in such buyback inspite of having 15% reservation. Historically it is also true that after buyback ,price has mostly gone up further .
There is a school of thought who preaches that a company launching buyback means it has no ability to do further extension with the amount and has thereby reached to a point of ultra maturity and saturation and therefore buying its own shares at higher price which is a much easier job and shares for such companies must be sold at buyback. But it is true that the buyback is stake appreciation. So theoretically there is not much difference between tendering and not tendering except for retailers probability for extra acceptance and tax efficiency.

2022 buy back:-
18000cr,@4500 ,size 4cr (1.08%) retailers quota 60 lakh
Promoter (Tata sons & TICL) having 267 CR, 72.19% as at June21
Total share 370 cr
Retailers number 10.8 lac , no of share 11.95 cr (3.24%) , Average 110 (not matching)
So arithmetically ER comes at 3.24 % and AR comes at 5.o2%
The following points may be noted:-
1. The % of share buy back and so also total numer reducing.
2. No of retailers increasing, one unconfirmed source says that the % of retailer in 2020 was 0.5% causing so high ER and AR . But for me such a low fi
gure is difficult to believe.
3.It tranpires that the promoter will participate as ever before and their portion will be 12993 cr out of total 18000 cr.
4. Current nii and retail portion is 4.9% as against 4.4% in June 21. So it is increasing and will further increase.
5. The final AR is a function of the difference between buyback price and the market price , the lower the better as much as the holders will try to offload at higer prices.
6. You have no means to know the final AR until the tendering process is completed.
Keeping all points in view, one may expect of AR at least 60% which will give good profit at the end.
Best of luck
14.12. K.Atar  Jan 19, 2022 8:56:24 PM I Like It. | Report Abuse
Ou Ai,
Sir ji,
Appreciate such a nicely interpretation of the event with a balanced approach. πŸ‘

Thanks
14.13. IPO Mitr  Jan 20, 2022 10:53:52 AM I Like It. 1 | Report Abuse
@Ou Ai

>>Gains exempted out of grandfathering though factually right, is not a big enough reason for less tendering,

Please point out in where did I say that the due to grandfathering there would be less tendering. I only said that grandfathering already protected capital gains till 31st Jan 2018 and hence we should not say that buyback 2022 is protecting last 15-20 years capital gains.

>> as gains after post Jan 2018 are phenomenal that is not exempt.
Again where did I say that the above is not correct.

>>Buy back is an opportunity made for mainly for long term shareholders instead of dividends that are taxable is the factual position.

If we are comparing the buyback vs dividend then I agree to the above but I have different opinion on the Blanket statement "Buyback is for the benefit of long term investors" and we can surely agree to disagree on this point. I believe that companies come out with buyback when they wish to show higher EPS in the future without utilizing the "cash in hand" in the growth of the company and its profitability or if when they are forced by very large stakeholders e.g. Government for higher share of company profits. I sincerely doubt that "Benefits to long term retail investors" is the reasons for companies to come out with buybacks. I believe that some long term retail investors get benefitted in the buybacks by default only. It is my personal view and may not align with many but that is absolutely fine.

>>Those buying less than 2 lakhs in order to avail small share holder's benefit are making best out of short term opportunity.

Here also I may politely agree to disagree with you and that is my personal view only. I believe that "good opportunity" or "not so good opportunity" or "bad opportunity" it all depends on the skill of the person to transact optimally during the buyback period e.g. one of the important aspect (along with so many other aspects) is entry (buying) price.....

>>Long term investors with investment over decade generally do not rush to >>sell post buy back as the holding cost is miniscule. They may add more at >>lower prices having sold in buy back. Short term investors may either sell or >>continue to hold.

I am not sure in what context you mentioned this but if it is the context to people switching to Infosys to TCS then I would again say it depends on the psychology of individual investors and also on the fact if investor is the "ACTIVE" or "PASSIVE" one. I have worked with both TCS & INFOSYS both and understand both companies very well. I have also been a long term investors in TCS and INFOSYS both and I, my family, friends and acquaintance who follow their investments "ACTIVELY" do re-balance our investment not every quarter and not after every buyback but whenever there is sustained (over a significant period of time) relative underperformance or overperformance.

I would like to thank you for all your views and appreciate you knowledge and expertise from the bottom of my heart.