TCS may announce mega share buyback proposal on Friday
The Board of India's largest IT firm TCS will meet on June 15 and is expected to announce the details of a buyback proposal for its shareholders.
The company had, in a filing on June 13, informed the exchanges about the meeting of its board to consider the buyback programme.
Indian IT companies, last year, bought back shares in a bid to return excess cash to shareholders. TCS had announced Rs 16,000 crore buyback of shares last year and followed it up with issue of bonus shares in April.
“We see a high probability of the quantum of buyback in this year being at least at the same level as in FY18 or Rs 16,000 crore. If the buyback is done at Rs 1,800 (near the CMP of Rs 1,781), TCS would be able to buy back 2.32% of its outstanding shares,” said Urmil Shah, analyst with IDBI Capital.
Share buybacks improve a company's earning per share and help in shoring up the value during sluggish market conditions.