Country’s largest software services company TCS (Tata Consultancy Services) is mulling a proposal of shares buy-back at its board meeting to be held on 15 June 2018. Keeping this prospects, TCS shares rallied in Wednesday’s morning trade by surging upto 3 percent to Rs. 1830, hitting near 52-week high. On the National Stock Exchange, shares of TCS touched an intraday a high of Rs. 1,821 in today’s’ morning trade.
The Mumbai-based IT major, however, did not reveal more details about the proposal of buyback. In last year, TCS had carried out a Rs.16,000-crore mega buy-back offer, bringing about 5.61 crore shares at a price of Rs 2850 per equity share.
Share buybacks help improve the earnings per share (EPS) and return excess cash to share-holders, together supporting share prices during slow-moving market conditions.
Indian IT firms have been under stress to return surplus cash on their books to share-holders by way of dividends and buybacks. Some other IT companies, including Infosys Limited and HCL Technologies Limited in last year, had undertaken buyback offers of Rs. 13,000 crore and Rs. 3,500 cores, respectively.
At the time of this updation, the stock of TCS was quoting higher by 2.07 percent at Rs. 1817.85 on the NSE while the Benchmark Nifty was up by 0.33 percent at 10,87865 and the BSE Index was at 35,843.15 up by 0.40 percent.