TCS’ existing shareholders, who held TCS shares worth less than Rs 2 lakh on November 25 (record date) could use the buyback route and tender their shares, maximum of 57 shares, to get premium buyback price of Rs 4,150.
Even in Q1 FY24, TCS had paid out 100 per cent of the variable pay to a major part of its workforce. On the other hand, its peers Infosys and Wipro rolled out only 80 per cent variable pay for the quarter.
Buybacks by TCS are usually followed by similar announcements by other major IT firms, especially Infosys and Wipro. A buyback is one of the most tax efficient ways to reward shareholders, as profits on tendering shares during a buyback are tax-free.