TCS Share Buyback Attracts Attention with Premium Offering

TCS Share Buyback Attracts Attention with Premium Offering

VoM News Desk | November 16, 2023 | 10:23 AM IST | Breaking News | Follow on Google News

TCS Share Buyback Attracts Attention with Premium Offering

TCS Share Buyback Attracts Attention with Premium Offering

Tata Consultancy Services Ltd (TCS), a major player in the Indian IT sector, has set the stage for its share buyback process, declaring November 25, 2023, as the record date. The company has proposed a buyback of shares at ₹4,150 per share, which is significantly higher than its current trading price of around ₹3,425 apiece on the National Stock Exchange (NSE). This represents a premium of over 20%, making it a focal point for investors and market watchers.

Expert Advice on TCS Buyback

Avinash Gorakshkar, Head of Research at Profitmart Securities, recommends TCS shareholders to tender their shares in the buyback. He cites the IT sector’s expected sluggish performance in the coming quarters, especially in the US and Europe where TCS has substantial business, as a reason for the company’s shares likely remaining consolidated. Gorakshkar highlights the buyback as an advantageous short-term opportunity, especially since the income from this buyback would be tax-exempt.

TCS Share Price Outlook

Sumeet Bagadia, Executive Director at Choice Broking, offers an optimistic outlook on TCS shares. He observes a strong breakout from its trading range and the formation of new higher lows, supported by significant trading volumes. Currently trading above crucial Exponential Moving Averages (EMAs), including the 20-day and 200-day EMAs, TCS displays bullish momentum with potential for further price appreciation. Bagadia suggests that the share buyback announcement could drive some buying, potentially raising the stock price to around ₹3,570 in the short term. He advises maintaining a stop loss at ₹3,320 per share.

TCS Buyback Date and Details

TCS has informed Indian stock market exchanges about the buyback record date, planning to repurchase up to 4,09,63,855 equity shares. This buyback, priced at ₹4,150 per share, amounts to an aggregate of ₹17,000 crore, excluding transaction costs, applicable taxes, and other related expenses. This strategic move by TCS reflects a significant return of value to its shareholders and has created a buzz in the stock market.

VoM News Desk

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