TCS shares gained 3.74% to an intraday high of Rs 3526.45 against the previous close of Rs 3399.30 on BSE. Market cap of the firm rose to Rs 12.89 lakh crore.
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.