TCS rises over 3 pc after share buyback announcement

Mumbai: Shares of Tata Consultancy Services (TCS) on Thursday closed with over 3 per cent gains after the company announced a mega-Rs 16,000 crore buyback plan at Rs 3,000 per equity share.

The stock closed at Rs 2,824.80, up 3.19 per cent on the BSE. During the day, it rose by 5.39 per cent to Rs 2,885 — its record high.

On the NSE, it jumped 3.02 per cent to close at Rs 2,818.45.

The company’s market valuation also rose by Rs 32,796.63 crore to Rs 10,59,973.63 crore on the BSE.

In traded volume terms, 6.93 lakh shares were traded at the BSE and over 1.98 crore units on the NSE during the day.

“TCS impressed with revenue growth of 4.8 per cent quarter-on-quarter. Broad-based growth across geographies and verticals indicates healthy recovery across segments,” said a report by Motilal Oswal Research.

In 2017 and 2018 too, TCS had undertaken buyback offers of similar sizes.

The board of directors of the company has approved a proposal to buyback up to 5,33,33,333 equity shares of the company for an aggregate amount not exceeding Rs 16,000 crore, being 1.42 per cent of the total paid-up equity share capital at Rs 3,000 per equity share, TCS said in a regulatory filing on Wednesday.

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