Today is the last day to buy Tata Consultancy Services (TCS) shares for investors who want to participate in the share buyback proposal announced by the company. TCS has set February 23, 2022 as the record date to identify investors who will be eligible to participate in the stock buyback plan. Tata Consultancy Services last month announced a share buyback proposal worth Rs 18,000 crore. The company plans to buy back shares from investors at Rs 4,500 per share which is at a premium of 20 per cent to today's price of Rs 3,737.
Investors can buy TCS shares today to participate in buyback plan as the shares will reflect in their accounts on February 23 as per the T+2 settlement rule of stock exchanges.
TCS shares will go ex-buyback in trade tomorrow and the company will announce its buyback dates going ahead. After the TCS share buyback dates are announced, investors can tender their shares in the special trading window which will be opened by brokerage firms on their portals and mobile applications.
Also Read: How You Can Benefit From The TCS Buyback
Once the investors tender shares for the buyback the exact number of shares tendered for the buyback will be blocked from trading. Once the buyback process is completed, depending upon the acceptability ratio, the number of shares accepted by the company will be deducted from investors account and the rest will reflect in brokerage accounts.
Going by the past buybacks done by Tata Consultancy Services, analysts expect acceptability ratio of 20-30 per cent.
The board of directors of TCS had approved the buyback of up to 4 crore shares for an aggregate amount not exceeding Rs 18,000 crore. The buyback size amounts to 1.08 per cent of the total paid-up equity share capital.
