TCS Buyback Sees 35% Acceptance Ratio, Mega Offer Subscribed 6.5 Times

12 Dec 2023 , 09:41 AM

Tata Consultancy Services (TCS) has reported an acceptance ratio of approximately 35% for its buyback issue, as disclosed by several investors who tendered their shares.

Acceptance ratio signifies the proportion of shares accepted for repurchase by the company in relation to the total number of tendered shares. Notably, the ratio for the 2022 buyback stood at 24%.

For small shareholders, the buyback ratio was set at one share for every six shares held as of the record date. Meanwhile, other shareholders were eligible for a ratio of two shares for every 209 shares held.

TCS had planned to repurchase 4.09 crore shares at Rs 4,150 per share, and the company received bids for a total of 26 crore shares.

Promoters of TCS, Tata Sons, and Tata Investment Corporation, expressed their intention to participate in the buyback, planning to tender 2.96 crore shares. This move is anticipated to increase their combined shareholding to 72.41%, up from the current 72.3% post-buyback.

The mega Rs 17,000 crore buyback offer from TCS experienced robust investor response, with a subscription rate of 6.5 times, according to BSE data. The buyback offer, initiated on December 1, concluded on Thursday.

This marks TCS’s fifth buyback offer, with previous ones launched in 2017, June 2018, October 2020, and January 2022, amounting to Rs 16,000 crore, Rs 16,000 crore, Rs 18,000 crore, and Rs 18,000 crore, respectively.

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