 "TCS buyback to boost cash utilisation, return on equity by 150-200 bps")
The buyback announcement by TCS led to a 7.3 per cent jump in its share price to an all-time high on Monday.
TCS’ announcement was looked at in positive light by the Street, given that it is expected to improve the firm’s return ratios, reward shareholders, and enable it to use cash more efficiently.
While details are not known, analysts expect the buyback offer to range from Rs 18,000-20,000 crore. An analyst at a domestic brokerage says: “While the price is not known, past experience indicates that the offer should help boost return on equity (RoE) by 150-200 bps.” Though ‘other income’
