India’s largest software service company has announced its share buyback for the year 2020. This is the 3rd buyback from TCS in last 4 years. In 2017 and 2018 also TCS has done the buyback of Rs 16,000 Cr each.
Current TCS buyback is also similar size which is Rs 16,000 Cr. The company has announced to repurchase 5.33 cr shares which are 1.42% of the total paid-up equity @ Rs 3000 per share. The price of the buyback is 9.6% premium to the previous closing day of the announcement date.
Below is the complete details about TCS Buyback. Record date, buyback open and close dates are announce in below section.
| Buyback Type: | Tender Offer |
| Buyback Offer Amount: | Rs 16000 Cr |
| Buyback Number of Shares: | 5.33 Cr |
| Buyback Price: | Rs 3000 |
| Buyback Offer Size (In %): | 1.42% |
| Total Share Capital: | Rs 1,027,177.79 Cr |
| Face Value: | 1 Per Equity Share |
| Buyback Offer Size (In %): | 1.42% |
Can I Invest today to participate in TCS buyback offer? No
In this section we have covered all important dates related to TCS Buyback. Dates are updated as they are announced. The most noted dates are record date and buyback open and close dates, which one should use to participate in buyback.
| Buyback Activity | Date |
|---|---|
| Board Meeting for Buyback proposal | 7th Oct 2020 |
| Buyback Approval date | 7th Oct 2020 |
| Public Announcement of Buyback | 7th Oct 2020 |
| Record Date | 28th Nov 2020 |
| Buyback opens on/Buyback Opening Date | 18th Dec 2020 |
| Buyback closes on/Buyback Closing Date | 1st Jan 2021 |
| Cut-off date to receive completed tender forms by Registrar | 3rd Jan 2021 |
| Cut-off date for verification by the Registrar | 11th Jan 2021 |
| Cut-off date to inform Stock Exchange on acceptance or non-acceptance of tendered Equity Shares by Registrar | 11th Jan 2021 |
| Last date of settlement of bids on the stock exchange | 12th Jan 2021 |
| Last date to return unaccepted shares by Registrar | 12th Jan 2021 |
| Last date of extinguishment of Equity Shares | 19th Jan 2021 |
Stock Holding table gives a clear picture on retail investor holdings of TCS shares which helps investor to decide on participating in buyback offer. The less number of retail holdings means higher chance of acceptance in buyback under retail category which is equal to higher profit.
| Holding Type | In % |
|---|---|
| Promoter-Foreign | 0.0% |
| Promoter-Indian | 72.05% |
| Non-Promoter-Institutions | 23.95% |
| Non-Promoter-Non-Institutions | 4.01% |
TCS Public Announcement >>Document
TCS Draft Letter of Offer >>Document
TCS Letter of Offer >>Document
TCS Post Buyback Public Announcement >>Document
For Buy back shares holders are divided in 2 categories:
| Category | Entitlement Ratio of Buyback Per Equity Shares | Entitlement Ratio of Buyback in % |
|---|---|---|
| Reserved Category | 2 Equity Share out of every 5 fully paid-up Equity Share held on the Record Date. | 41.05 |
| General Category | 2 Equity Share out of every 165 fully paid-up Equity Share held on the Record Date. | 1.21% |
Buyback Calculator - Check your Profit/Loss and Breakeven point for left out shares.
For TCS Buyback Offer, Report updated by the manager of buyback -
In general category - response received 309%, No. of Equity Shares reserved in Buyback was 4,53,33,333 where valid bid received for retail category was 14,02,87,605 which is 309% oversubscribed.
In Reserved category for Small Shareholders (Retail) - response received only 76%, No. of Equity Shares reserved in Buyback was 80,00,000 where valid bid received for retail category was 61,25,386 which is 76%. Final Acceptance Ratio for Retail Investors was 100%.
The table below will give you a complete dashboard view for all open buyback offer in current market.
| Company Name | Buyback Type | Offer Amount | Buyback Price | CMP | Record Date | Buyback Open Date | Buyback End Date |
|---|---|---|---|---|---|---|---|
| Garware Technical Fibres Limited | Tender Offer | 72.99 Cr | 2300 | 2202.50 (-0.59%) | 11-12-2020 | TBD | TBD | Jullundur Motor Agency (Delhi) Limited | Tender Offer | Rs 26.82 Cr | 36 | 34.35 (2.38%) | 24-12-2020 | TBD | TBD | Engineers India Limited | Tender Offer | 586.90 Cr | 84 | 79.80 (0.00%) | 01-01-2021 | TBD | TBD | Industrial & Prudential Investment Co. Ltd | Tender Offer | Rs 8.34 Cr | 1,200 | 1128.35 (2.03%) | 01-01-2021 | TBD | TBD | Indian Toners and Developers Limited | Tender Offer | 36.98 Cr | 160 | 138.85 (-4.93%) | 15-01-2021 | TBD | TBD | NIIT Limited | Tender Offer | Rs 237 Cr | 240 | 202.35 (-0.54%) | TBD | TBD | TBD |
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Detail Article on Benefit from buyback offer >> Read
TCS Buyback Important dates - Record Date,Buyback Start and End date. Buyback Details - Buyback Price, Buyback Offer Size, Buyback Number of Shares, Retail Investors limit. What is the record date for TCS? How can I apply in TCS Buyback offer?
Last Updated on 2021-01-07T23:55:35+00:00
The Record Date for TCS Buyback offer is 28th Nov 2020
Which means you should hold the TCS share in your demat account by closing session of 28th Nov 2020. Share purchased on and before (28th Nov 2020) - 2 business days will be available in your demat account by 28th Nov 2020.
Its all depend on acceptance ratio which usually announce with Letter of Offer. Lets assume if you have TCS shares at ₹2735 and buyback offer price is ₹3000, you can get ₹265 per accepted share. If you hold 73 shares of TCS and if proportionate acceptance is between 33% and 50%, in such case you are eligible to sell your 24 to 36 shares with the gain from buyback of ₹6360 to ₹9540.
The percentage of proportionate acceptance varies from company to company. This percentage can be also 100% which means that company buys all of your shares.
| % Share Accepted | No of Shared Accepted | Gain from Buyback Offer |
|---|---|---|
| 33% | 24 | ₹6360 |
| 50% | 36 | ₹9540 |
| 75% | 55 | ₹14575 |
| 100% | 73 | ₹19345 |
Steps to participate in TCS buyback:
Share holders who hold less than 2 lakh worth of shares are consider in Retail Category. All others will consider in General Category. Last trading price on record date will be used to calculate the eligibility criteria.
As this is a buyback tender offer, shares are accepted in proportionate basis. Proportionate acceptance / rejection will be returned back to the eligible shareholders directly by the Registrar on or before 12th Jan 2021.
Buyback opening date for TCS: 18th Dec 2020
Buyback closing date for TCS: 1st Jan 2021
This is the window when you need to submit your application for proposal for share buyback. If you are submitting tender forms or submitting physical share certificates, it must reach to registrar by 3rd Jan 2021.
