While the buyback entitlement for small investors, as defined by those with investments up to Rs 2 lakh, was fixed at 17%, the final acceptance ratio is expected to be around 30-35% in the category as not all shareholders participate in the buyback. The acceptance ratio has been 100% during the previous buybacks in 2017, 2018, and 2020. However, the acceptance ratio was around 24% during the last buyback in 2022.
The buyback will remain open for tendering till December 7. For small shareholders, as defined by those with investments less than Rs 2 lakh, the entitlement ratio has been fixed at 1 equity share for every 6 shares held on the record date (i.e. November 25). The ratio comes to about 17%.
At a board meeting last month, India s largest software services exporter had approved a proposal to buyback up to 4,09,63,855 equity shares of the company for Rs 17,000 crore, representing 1.12% of the total paid-up equity share capital, at Rs 4,150 per share.
Following a board meeting to consider its Q2 results, TCS said the board has approved a proposal to buyback 4.09 crore shares for an aggregate amount not exceeding Rs 17,000 crore, representing 1.12% of the total paid-up equity share capital of the company.