TCS Buyback Review, Offer Details, Price, Dates, Size & more
Last Updated Date: Nov 17, 2022In this article, we will discuss about TCS Limited Buyback offer, buyback price, buyback size, TCS Buyback record date, company financial, buyback necessity and its impact on company.
To track the real time share price of this Buyback, click on this link – TCS Share Price
TCS Limited Buyback Details
| Buyback Type | Tender Offer |
| Opening Date | [•] |
| Closing Date | [•] |
| Buyback Offer Amount | Rs.16,000 CRORE |
| Buyback No. of Shares | 5,33,33,333 |
| Face Value | Rs.1 |
| Date of Buyback Approval | October 7, 2020 |
| Date of Public Announcement | November 19, 2020 |
| Buy Back Price | Rs.3,000 |
| Buy Back Premium | 29.89% |
| Date of Board Meeting | October 7, 2020 |
TCS Buyback Opening and Closing Date
The starting and closing date of this buyback is from [•] to [•].
TCS Buyback Cash Offer
Cash Offer to Buy-back up to 5,33,33,333 fully paid-up equity shares of the Company of face value of Rs.1 each.
TCS Buyback Record Date
The decided record date is NOVEMBER 28, 2020.
TCS Buyback Price
At a price of Rs.3,000 per Equity Share.
TCS Buyback Size
At a buyback price of Rs.3,000 payable in cash for an aggregate maximum amount of Rs.16,000 CRORE.
TCS Limited Buyback Acceptance Query
You can check for Buyback Acceptance query here. Just click on the given link and it will redirect you to buyback acceptance query page.
TCS Limited Buyback Acceptance Ratio
Find profit & profit percentage based on various acceptance rate, The profit is calculated based on 1000 shares.
| Acceptance Ratio | Total Shares Accepted | Buyback Price | Buyback Amount | Profit | Profit% |
| 20% | 200 | 3,000 | 600000 | 55590 | 2.04% |
| 40% | 400 | 3,000 | 1200000 | 111180 | 4.08% |
| 60% | 600 | 3,000 | 1800000 | 166770 | 6.13% |
| 80% | 800 | 3,000 | 2400000 | 222360 | 8.17% |
| 100% | 1000 | 3,000 | 3000000 | 277950 | 10.21% |
Profit is calculated from Nov 24, 2020 share price i.e. Rs.2722.05 per share of TCS Limited.
According to the above table, if a shareowner applies for 1000 shares of TCS limited & gets 20% acceptance from the company and the owner with 1000 shares will sell 200 shares @ Rs.3000 per share & receive Rs.55590 as profit amount & 2.04% profit percentage on selling these 200 shares back to the company.
Similarly, if the owner gets 60% acceptance of share from the company, the owner will sell 600 shares @ Rs.3000 & receive a profit of Rs.166770 @ 6.13% profit percentage.
TCS Limited Buyback Overview
In 1968, Tata Consultancy Services (“TCS Division”), was established as an unincorporated division of Tata Sons Private Limited (formerly known as Tata Sons Limited) to provide management and technology consultancy services. RR Donnelley (India) Private Limited was incorporated on January 19, 1995.
The Company is an information technology (IT) services, consulting and business solutions organization that offers a consulting-led, cognitive powered, integrated portfolio of IT, Business & Technology Services, and engineering services. Headquartered in Mumbai, the Company is the flagship company of the Tata Group.
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TCS Buyback – Company Finances
The brief audited consolidated financial information of the Company for the last three financial years are provided below:
[In Rs. Lakh]
| Particulars | Sep 30, 2020 (Unaudited) | 12 Months period ended March 31 (Audited) |
||
| 2020 | 2020 | 2019 | 2018 | |
| Total Income | 67,42,900 | 139,38,800 | 130,79,700 | 1,03,15,900 |
| Total Expenses (excluding finance costs, depreciation & amortization, tax and exceptional items) | 47,52,700 | 93,95,300 | 88,20,600 | 69,55,100 |
| Interest | 26,700 | 74,300 | 17,000 | 3,000 |
| Depreciation | 1,49,400 | 2,70,100 | 1,71,600 | 1,64,700 |
| Profit before tax | 18,14,100 | 41,99,100 | 40,70,500 | 31,93,100 |
| Provision for tax (including Deferred Tax) |
4,59,700 | 8,73,100 | 10,64,000 | 6,69,000 |
| Profit /(Loss) after tax | 13,54,400 | 33,26,000 | 30,06,500 | 25,24,100 |
| Equity Share Capital | 37,524 | 37,524 | *37,524 | 19,143 |
| Reserve and Surplus | 83,84,600 | 73,99,300 | 78,52,300 | 75,67,465 |
| Networth | 84,22,124 | 74,36,824 | 78,89,824 | 75,86,608 |
| Total Debt | – | – | 3,900 | 22,400 |
TCS Limited Buyback Dates
| Date of Board Meeting approving the Buyback | October 7, 2020 |
| Date of publication of Public Announcement for Buyback | November 20, 2020 |
| Record Date for determining the Buyback Entitlement and the names of Eligible Shareholders | November 28, 2020 |
| Buyback Opening date | [•] |
| Buyback Closing date | [•] |
| Last Date of verification of Tender Forms by the Registrar | [•] |
| Last date of intimation regarding acceptance / non-acceptance of Tendered Equity Shares to the BSE Limited by the Registrar | [•] |
| *Last date of Settlement of Bids on the BSE Limited | [•] |
| Last date of return of unaccepted Equity Shares by BSE Limited | [•] |
| *Last date of Extinguishment of Equity Shares | [•] |
Details of Public Announcement
The Public Announcement was published on November 20, 2020 in the following newspapers, in accordance with Regulation 7(i) of the Buyback Regulations, within two working days from the date of declaration of results of the Postal Ballot or special resolution:
| Publication | Language | Edition |
| Financial Express | English | All Editions |
| Jansatta | Hindi | All Editions |
| Loksatta | Marathi | All Editions |
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Necessity of TCS Limited Buyback
The current Buyback is in line with the Company’s shareholder-friendly capital allocation practice of returning excess cash to shareholders, thereby increasing shareholder value in the longer term, and improving the Return on Equity.
Impact of TCS Limited Buyback on the Company
The Company believes that the Buyback is not likely to cause any material impact on the profitability or earnings of the Company except to the extent of reduction in the amount available for investment, which the Company could have otherwise deployed towards generating investment income.
The Buyback shall not result in a change in control or otherwise affect the existing management structure of the Company.
The debt-equity ratio after the completion of the Buyback will be within the permissible limit of 2:1 prescribed by the Act and the Buyback Regulations, based on both audited condensed standalone interim financial statements and audited condensed consolidated interim financial statements of the Company, even if the response to the Buyback is to the extent of 100% (full acceptance).
The Company believes that the Buyback will not impact the growth opportunities of the Company.
Salient financial parameters consequent to the Buyback based on the latest audited financial statement of the Company are as under:
| Parameters (based on audited standalone financial statements for year ended September 30, 2020) | Pre Buy-back | Post Buy-back (Assuming Full Acceptance) |
| Net worth (Rs in crores) | 84,22,100 | 68,22,100 |
| Return on Net worth (%) | 34.97% | 43.17% |
| Earnings Per Share (Rs) | 36.09 | 36.61 |
| Book Value per Share (Rs) | 224.45 | 184.43 |
| Price / Earnings Ratio (P/E)** | 69.06 | 68.08 |
| Total Debt / Equity Ratio | – | – |
Basis of Calculating TCS Buyback Price
The Equity Shares of the Company are proposed to be bought back at the Offer Price, i.e. a price of Rs.3,000 per share.
The Offer Price has been arrived at after considering various factors including, but not limited to the trends in the volume weighted average prices and closing price of the Equity Shares on the Stock Exchanges where the Equity Shares of the Company are listed, the net worth of the Company, price earnings ratio, impact on other financial parameters and the possible impact of Buyback on the earnings per share.
The Buyback Price represents
Premium of 29.89% and 29.27% to the volume weighted average market price of the Equity Share on BSE and on NSE, respectively, during the three months preceding October 4, 2020, being the date of intimation to the Stock Exchanges of the date of the Board Meeting to consider the proposal of the Buyback (“Intimation Date”), and
Premium of 18.92% and 18.88% over the closing price of the Equity Share on BSE and NSE, respectively, as on Thursday, October 1, 2020, being the last trading date prior to the Intimation Date.
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Source of Funds for the Buyback
Assuming full acceptance, the funds that would be employed by the Company for the purpose of the Buyback of 5,33,33,333 (Five crore thirty-three lakh thirty-three thousand three hundred and thirty-three) Equity Shares at a price of Rs.3,000 (Rupees Three thousand only) per Equity Share would not exceed Rs.16,000 crore (Rupees Sixteen thousand crore only) excluding transaction costs, applicable taxes, other incidental and related expense.
The funds for the implementation of the proposed Buyback will be sourced out of the free reserves (retained earnings) and/or such other source as may be permitted by the Buyback Regulations or the Act.
The Company shall transfer from its free reserves, a sum equal to the nominal value of the Equity Shares so bought back to the capital redemption reserve account, and details of such transfer shall be disclosed in its subsequent audited financial statements. The funds borrowed, if any, from banks and financial institutions will not be used for the Buyback.
TCS Limited – Manager to the Buyback
| JM Financial Limited 7th Floor, Cnergy, Appasaheb Marathe Marg, Prabhadevi, Mumbai – 400025, Maharashtra, India Tel: +91 22 6630 3030 Fax: +91 22 6630 3330 Contact Person: Ms. Prachee Dhuri E-mail: tcs.buyback2020@jmfl.com Website: www.jmfl.com SEBI Registration Number: INM000010361 Validity period: Permanent Corporate Identity Number: L67120MH1986PLC038784 |
TCS Ltd – Registrar to the Buyback
|
Link Intime India Private Limited
C-101, 247 Park, L.B.S. Marg, Vikhroli (West), Mumbai 400 083 Tel: +91 22 4918 6300 Fax: +91 22 4918 6195 Contact Person: Mr. Sumeet Deshpande E-mail: tcs.buyback2020@linkintime.co.in Website: www.linkintime.co.in SEBI Registration Number: INR000004058 Validity period: Permanent Corporate Identity Number: U67190MH1999PTC118368 |
TCS Buyback – Contact Details
| Company Contact Details |
| Tata Consultancy Services Limited Corporate Identity Number (CIN): L22210MH1995PLC084781 Registered Office and Correspondence Address: 9th Floor, Nirmal Building, Nariman Point, Mumbai – 400 021 Tel: +91 22 6778 9696, Fax: +91 22 6630 3672 E-mail: investor.relations@tcs.com#, Website: www.tcs.com; Compliance Officer: Mr. Rajendra Moholkar, Company Secretary |
TCS Limited Buyback News
News 1 – Buyback PDF / Letter of Offer [Download]
News 2 – TCS Ltd – Public Announcement
FAQs of TCS Buyback
What is the TCS Buyback Period?
TCS Buyback Period is briefly the time interval starting from the date of declaration of results of the postal ballot through remote e-voting i.e. NA. The period basically ends on the date of payment of consideration to Eligible Shareholders who participated in the Buyback, i.e. NA.
What type of buyback is TCS Buyback?
This company has chosen the route of Tender offer to repurchase the shares from the eligible shareholders. Tender offer route is one of the Two Routes generally chosen by the companies, i.e. Tender Offer and Open Market Through Stock Exchanges.
What is the TCS Buyback Offer?
TCS Buyback Offer refers to the number of shares the company plans to buy back from the eligible shareholders. Herein, the company proposes to buyback 5,33,33,333 Fully paid up Equity shares, adhering to the buyback price.
When TCS Buyback offer will start?
As per the released schedule, the TCS Buyback offer will start on NA. This is the opening date from when the Buyback will open for all shareholders. You will find the updated records of TCS Buyback at all times, we ensure you have access to the right data.
When is the closing date of TCS Buyback?
For ease in access to the dates and related aspects, we have segregated the closing date of TCS Buyback. The buyback would close on NA. The closing date is the last day for which the Buyback shall be open for the shareholders.
What is the offer price for TCS Buyback?
The amount at which the shares are taken back by the company is referred to as TCS Buyback offer price. Herein, each and every fully Paid-up equity share is priced at Rs.3,000, the price paid to each eligible shareholder.
What is the record date for TCS Buyback offer?
Record date of TCS Buyback is NOVEMBER 28, 2020. Record date is generally the day when eligible shareholders are declared. Furthermore, complying with Buyback regulations, letter of offer and Tender form is sent to the eligible shareholders.
What is the issue size of TCS Buyback?
TCS Buyback Size is Rs.16,000 CRORE and is the total worth of Equity Shares the company plans on taking back. This amount is obtained from the total number of equity shares, multiplied by the Buyback price.
What is the necessity for TCS Buyback?
Objective of the TCS Buyback is to enhance the total return made by equity shareholders. Herein, the excess funds are given to the equity shareholders, which are over and above its ordinary capital requirements and in excess of any current investment plans. Through buyback, the company will distribute the surplus cash to shareholders as per their holding proportion.
Who is the Registrar to TCS Buyback offer?
The designated registrar of TCS Buyback is Link Intime India Private Limited. You can find all the details related to the registrar in this report and contact them if you have any queries. You can check the details of the registrar, contact person, email address and more.
Who is the Manager to the TCS Buyback offer?
Manager to the TCS Buyback is JM Financial Limited. Manager basically ensures that the company following up buyback strictly adheres to and in conformity with the provisions of the Companies Act and Buyback Regulations.
How to check TCS buyback acceptance ratio?
Acceptance ratio is basically the proportion of shares the company accepts, to the final number of shares tendered. It refers to how much the company would buyback and how profitable it would be for you. You can also check how much profit (%) you will earn. Click on the link and check on the website page.
Where to find TCS Buyback Dates / Events?
You can check the table for the list of events, as designed for the buyback. This article is your one and final destination to check all the TCS Buyback information. You will encounter a section exclusively set to record the dates, in this article, referred to as TCS Buyback Dates.
What can be the Impact of TCS Buyback on the Company?
The Buyback will not in any manner impair the ability of the Company to pursue growth opportunities or meet its cash requirements for business operations. The Buyback is expected to contribute to the overall enhancement of shareholder value and result in an increase in the return on equity of the Company. This Buyback is being undertaken, inter alia, for helping the Company to return surplus cash to the Eligible Shareholders broadly in proportion to their shareholding.
Where to find complete details on TCS Buyback?
As mentioned already, this page would give you every single detail about this buyback. Also, you find the link to download the Draft / Letter of Offer. Each and every section is vividly and carefully placed, giving you insights into all major as well as minor aspects of the ratio. The article is also inclusive of all the links.
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