TCS surges 6% as board approves share buyback proposal

The board has approved buyback of up to 56 million shares at Rs 2,850 each via tender offer

Tata Consultancy Services (TCS) has moved higher by 6% to Rs 2,555 on the National Stock Exchange (NSE) in late noon deals, after the company’s board has approved a proposal to buyback up to 56.14 million equity shares at Rs 2,850 per share through tender offer.

“The board has approved a proposal to buy back up to 56.14 million equity shares of the company for an aggregate amount not exceeding Rs 16,000 crore, being 2.85% of the total paid up equity share capital, at Rs 2,850  per equity share,” TCS said in a stock exchanges 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, it added.

At 03:25 pm; the stock was up 5% at Rs 2,538 on the NSE. A combined 1.92 million shares changed hands on the counter on the NSE and BSE so far.