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1. Cautious ProPrio

| Link|February 21, 2022 4:37:18 PMReply

According to financial express....
..
Buyback Size: Rs 18,000 crore
– Buyback Price: Rs 4500/share
– CMP (as of 21 Feb 2022): Rs 3720/share
– Buyback Premium: Rs 780/share (17.3%)
– Record Date: 23rd February 2022
– Total number of shares to be bought back: 4 crore shares (1.1% of paid-up equity)
– Shares reserved for small shareholders: ~0.6 crore shares (15% of buyback offer)
– Based on Buy Back price of Rs 4500, one can tender up to 44 shares (Rs 2,00,000/4500) to be eligible for Retail category
This should make all if.. buts doubt clear

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1.1. snipperRaj

| Link|February 21, 2022 6:24:29 PM

This is weird...Most of the people were of the opinion that record date highest volume price will be considered to check for retail quota. If 4500 rs price is considered and hence only 44 shares maximum for retail quota, then all those who bought 48-50 shares thinking record date price would be less than 4000 are now falling in general category.?????

1.2. antarix

| Link|February 21, 2022 7:53:39 PM

Many people are having the misconception that up to 44 shares will be counted in Retail category and some of these people are spreading incorrect information without verifying the facts from authentic sources.

To clear the things once more, request all to read the FAQ from TCS's site (page 19) which mentions the price as on record date to fix the category. Link is given below:

https://www.tcs.com/content/dam/tcs/pdf/discover-tcs/investor-relations/corporate-actions/2021-22/frequently-asked-questions.pdf

Further, it also clearly tells that -
'The Company will pay buyback tax as provided under the Income Tax Act, 1961.
As the Company will pay the buyback tax, any proceeds would be exempt from
taxation under the Income Tax Act, 1961 for the shareholders.'

Hope this helps.

1.3. lokes

| Link|February 21, 2022 9:23:38 PM

@Cautious: i have already seen this news and their author are also ignorant like many others.
@snipper: don't worry at all....its very basic thing of buyback, i am participating from 5-6 years in buyback. whatever i keep mentioning in different comments here is correct. Retail category will be decided as per closing price on record date for upto 2 lakh worth of shares.

Below is the link for the news and in same news, this is also mentioned.
https://www.financialexpress.com/market/tcs-share-buyback-how-likely-are-you-to-make-quick-profit-if-you-tender-shares-analysts-explain/2440234/

Retail investors looking for short term opportunity can buy the shares of TCS (upto the value of Rs 2 lakhs – as on the record date) from the open market and tender them in the buy-back offer,” said Motilal Oswal in its note.

1.4. snipperRaj

| Link|February 22, 2022 11:28:40 AM

Thanks lokes sir and antarix. Its clear.

1.5. Bhaumik

| Link|February 22, 2022 1:46:27 PM

I think category will be decided on the basis of closing price on record date not on buyback price of Rs.4500/-

1.6. anm

| Link|February 22, 2022 3:37:08 PM

Basis is closing price on 23rd Feb.Not 4500.

1.7. Asoke Sarkar

| Link|February 22, 2022 8:19:20 PM

As per my understanding this report is o.k , except for 200000 ÷3720 for eligibility under retail category.
Recorded price is often misunderstood as record date price. It is the price just prior to going ex . Anil Singhvi today told in zee business that record date closing price is taken for determination.

1.8. Vantage

| Link|February 22, 2022 10:17:18 PM

@Asoke Sarkar
There is a confusion in your prev post.

Can you tell what as per Anil singhvi , would be the date and price that would be taken into consideration for retail ? Is it Ex-Date viz 22Feb and Price at the start of the Ex date ie 3720 that one should use for calculating elilibilty?

1.9. Ou Ai

| Link|February 23, 2022 4:25:08 AM

Dear All
There appears a confusion about market price on record date to determine small shareholders eligibility.

Share price determining eligibility is given by the stock exchange where TCS planned to conduct the buy back later, NSE or BSE. The said exchange provides share price on 23rd EOD, today to buy back window based on traded price with the highest volume on 23rd. It takes into reckoning prices with volumes over entire trading duration today and aggregates to arrive with traded price. It is not closing price as the last few trades before closing can be manipulated to benefit or not benefit shareholders on the edge.

To be eligible below 2 lakh , one could have purchased shares up to say 50~52 shares at 3720. This would have meant cutting it close, if record date price spikes above 3800. So experts here advocated computing the quantity with 4500 with safe margin.

Trust this helps.