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TCS Buyback June 2018

Rated 4.5/5 by Team InvestorGain

June 15, 2018: Tata Consultancy Services (BSE:532540 | NSE:TCS) board has approved a proposal for buyback of up to 7.6 Cr shares at Rs 2100 per share, aggregating Rs 16,000 cr which is 2.0% of total number of paid-up equity shares capital.

June 13, 2018: This is second consecutive year where TCS has planned for Buyback. The company has a good amount of cash and company need to distribute this via buyback or dividend to shareholders.

Last year 2017-2018 company performed 16,000 Cr buyback. Market Price when buyback was announced was 2350 and buyback price was finalized on 2850. In such case person who proposed his share for buyback has got approx 500 per share. For retail investor acceptance ration was 100%.

After Buyback Company has split his share in 1:1 so the current market price for TCS is around 1800.

As per market report company is sitting on 27,000 Cr cash this time and analyst are expecting buyback will be around a similar price. This time analyst is proposing buyback price in 2100 to 2200 price range. TCS board is meeting on June 15th 2018, to approve buyback proposal.

What is TCS Buyback details?

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 16,000 Cr
Buyback Number of Shares: 7.6 Cr
Buyback Price: Rs 2100
Buyback Offer Size (In %): 2%
Total Share Capital: Rs 687,592.96 Cr
Face Value: 1 Per Equity Share

Can I Invest today to participate in TCS buyback offer? No

What are TCS Buyback Important Dates?

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.

TCS buyback offer important dates
Buyback Activity Date
Board Meeting for Buyback proposal 15th Jun 2018
Buyback Approval date 15th Jun 2018
Public Announcement of Buyback 15th Jun 2018
Record Date 18th Aug 2018
Buyback opens on/Buyback Opening Date 6th Sep 2018
Buyback closes on/Buyback Closing Date 21st Sep 2018
Cut-off date to receive completed tender forms by Registrar
Cut-off date for verification by the Registrar 23rd Sep 2018
Cut-off date to inform Stock Exchange on acceptance or non-acceptance
of tendered Equity Shares by Registrar
23rd Sep 2018
Last date of settlement of bids on the stock exchange 3rd Oct 2018
Last date to return unaccepted shares by Registrar 3rd Oct 2018
Last date of extinguishment of Equity Shares 5th Oct 2018

TCS Share Holding Pattern as of March 2018

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 71.92%
Non-Promoter-Institutions 23.65%
Non-Promoter-Non-Institutions 4.43%

TCS Ratio of Buyback

    For Buy back shares holders are divided in 2 categories:
  • Reserved category for Small Shareholders ("Reserved Category") - Who holds Max Rs 2 Lakhs worth of shares @Rs 2012.75 per equity share - in such case Max 99 Equity Shares as of Record Date 18th Aug 2018.
  • General category for all Shareholders other than Small Shareholders ("General Category")

TCS Ratio of Buy Back

Category Entitlement Ratio of Buyback Per Equity Shares Entitlement Ratio of Buyback in %
Reserved Category 43 Equity Share out of every 96 fully paid-up Equity Share held on the Record Date. 44.97
General Category 4 Equity Share out of every 235 fully paid-up Equity Share held on the Record Date. 1.70%

Post buyback comments TCS

For TCS Buyback Offer, Report updated by the manager of buyback -

In general category - response received 166.40%, No. of Equity Shares reserved in Buyback was 64761904 where valid bid received for retail category was 107767024 which is 166.40% oversubscribed.

In Reserved category for Small Shareholders (Retail) - response received only 35.12%, No. of Equity Shares reserved in Buyback was 11428572 where valid bid received for retail category was 4016984 which is 35.12%. Final Acceptance Ratio for Retail Investors was 100%.

Current and Upcoming Buybacks Key dates

The table below will give you a complete dashboard view for all open buyback offer in current market.

Current and Upcoming Buybacks Key dates
Company NameBuyback TypeOffer AmountBuyback PriceCMPRecord DateBuyback Open DateBuyback End Date
Tanla Platforms LtdTender OfferRs 170 Cr1200815.45 (-0.97%)25-10-2022TBDTBD
Garware Technical Fibres LtdTender OfferRs 90 Cr37504-11-2022TBDTBD
Orbit Exports LimitedTender OfferRs 10 Cr245140.35 (-5.14%)18-11-2022TBDTBD
KRBL LimitedTender Offer₹325.00Cr500282.15 (-0.97%)25-08-2023TBDTBD
Dwarikesh Sugar Industries LimitedTender Offer₹31.50Cr10573.63 (-2.54%)20-03-202427-03-202403-04-2024
Garware Technical Fibres LimitedTender Offer₹199.50Cr38003257.85 (-2.53%)26-03-202401-04-202405-04-2024
Freshtrop Fruits LimitedTender Offer₹33.69Cr175163.90 (0.09%)02-04-2024TBDTBD

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?

Company Contact Information

Tata Consultancy Services
9th Floor,
Nirmal Building,, Nariman Point,
Mumbai
Maharashtra
400021
Website: http://www.tcs.com

Registrar Contact Information

TSR Darashaw Ltd.
No. 6-10,
Haji Moosa Patrawala Ind. Estate,
20, Dr. E. Moses Road, Mumbai - 400011
Maharashtra
Website: http://www.tsrdarashaw.com

Last Updated on 2018-10-26T03:16:56+00:00

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User Reviews

8. Diljit N Gohel Sep 18 2018 11:07:17 AM Reply
Admin pl update new buyback
7. Ashok Ahuja Sep 01 2018 08:13:05 AM Reply
Sir, TCS Share touched 2080. Still we have to participate in buyback.
7.1. CA Sachin Jain Sep 03 2018 10:40:21 AM
Buyback price is 2100, and the current price is 2080 - which does not make any sense...You can exit at this point and can re-enter if you get chance before buyback date.
6. chirayu Aug 16 2018 11:38:51 PM Reply
Only 95 shares are eligible for Retail investor category.
6.1. Radha Krishna Murthy Kotla Aug 27 2018 10:59:55 AM
I purchased 100 TCS share@2007 on 14082018 is it comes small investors category
6.2. Team InvestorGain Aug 27 2018 11:00:21 AM
Hello Sir-

Approx price on record date was above 2000 for TCS, so around holding 95 shares in your demat on the Record date will come under retail category.
Exact numbers will decide once the company will declare an offer letter which we are expecting in the one-week time window.

Regards
Team TopShareBroker.com
5. CA Sachin Jain Aug 12 2018 12:37:48 PM Reply
Wednesday 15th Aug 2018 Trading holiday and Friday 17th Aug 2018 is settlement holiday. The record date for TCS buyback is 18th Aug 2018. So if you wish to participate in TCS buyback you need to buy on Monday 13th Aug 2018, so it can come in your demat by Thursday 16th Aug 2018.
4. CA Vipin jain Jun 28 2018 02:48:46 PM Reply
From Kotak Security - Acceptance ratio for retail investor is approx 35%
Note from Kotak Security : Considering, current volatile equity markets, rising global concerns and limited attractive stock ideas in the largecap space, we believe TCS buyback offers Low risk and moderate returns to retail investors and hence we suggest retail investor to accumulate ~95 share of TCS to participate in the buyback offer. We expect retail acceptance ratio to be healthy. The company management has indicated that the buyback process to be completed before end of Q2FY19.
4.1. Priyanka Jain Jun 28 2018 07:04:00 PM
Hi Vipin,

This is my calculation -

** CMP :- 1850.00
** BUYBACK AT :-2100
** TOTAL % OF BUYBACK :- 2%
** RETAIL%OF BUY BACK: 15% (2400 Cr)
** TOTAL BUYBACK :- 16000 Cr
** RETAIL SHARE HOLDING: 5000 Cr (APPROX)

The possibility of retail share acceptance is 100%, Coz out of 5000 Cr, not more than 50% peoples are going to participate.
4.2. Vikash Gupta Jul 06 2018 11:55:30 AM
Vipin Sir, I have purchased TCS @1800, now its 1900, As you have mentioned acceptance ratio will be 50% for the retail investor, is it a good idea to exit @1900. I am getting 10K at this time, if ratio will be 50% i will get 15K, in such case i need to hold this script for 3 months or more. Your opinion??
4.3. Kuldeep Jul 11 2018 11:05:18 PM
Dear Vipin Sir, Price reached 1970 today, Do u still suggest investor to wait for TCS buyback, or do u suggest to exit. I think we are getting more then what we will get form Buyback. Better we can exit now and enter back if its fall below 1900. Profit booking is very important such gain.
3. CA Vipin jain Jun 28 2018 11:44:49 AM Reply
Hi Guys,
Out of Rs 1600 cr buyback reserve category for small investor is 15% so it''s coming around Rs 2400 Cr.
For the retail investor, if buying price is 1800(95 Shares) and acceptance ratio at 60% - 2100(57 Shares) - approx return 10%.
For the retail investor, if buying price is 1800(95 Shares) and acceptance ratio at 80% - 2100(76 Shares) - approx return 12-13%.
For the retail investor, if buying price is 1800(95 Shares) and acceptance ratio at 100% - 2100(95 Shares) - approx return 16-17%.
I assume this ration will be 80%.
Regards
CA Vipin Jain
2. Prashant Jun 17 2018 03:02:45 PM Reply
Dates indicated need to be corrected fro July to June
1. Ram Murti Jun 15 2018 05:28:57 PM Reply
Based on the TCS buyback offer, we are expecting 100% acceptance in TCS buyback with a profit of Rs 26,000 for every application of Rs 2Lac which comes to around 13% in 3 months (Annualised Return of 52%). This return is far more superior than any fixed deposit and everyone should apply in this buyback.