TATA companies to get big benefits from TCS 'buyback offer'

By Lokmat English Desk | Published: January 15, 2022 05:37 PM2022-01-15T17:37:31+5:302022-01-15T17:37:31+5:30

Next

While the Corona crisis is still raging, many TATA Group companies are making inroads not only in the Indian market but also in the stock market. Investors are benefiting from the high performance of various Tata Group companies.

Tata Sons, its largest shareholder, will be the biggest beneficiary of the share buyback plan drawn up by Tata Consultancy Services (TCS), a company in the IT sector.

TCS's board of directors also approved an Rs 18,000 crore share buyback scheme. The existing shares will be purchased at a price of Rs 4,500 each.

Tata Sons owns 266.91 crore shares of TCS. Another Tata group company, Tata Investment Corporation, owns 10,23,685 shares.

As a result, both TATA companies are expected to receive Rs 12,993.2 crore from TCS's Rs 18,000 crore share repurchase scheme.

TATA Sons also sold shares worth Rs 9,997.5 crore last year between December 18, 2020, and January 1, 2021, in a Rs 16,000 crore share repurchase scheme announced by TCS.

Earlier, Tata Sons had made a profit of Rs 10,278 crore from a share repurchase scheme launched by TCS between May 18 and May 31, 2017. As of January 12, 2022, the promoter companies had a 72.19 percent stake in TCS, according to the stock exchange.

Since the dividend distribution became taxable, IT companies with a tight reserve in the balance sheet have followed the path of repurchase over the last few years, delivering shareholder benefits to the shareholders, with a surplus of shares over dividends.

Meanwhile, IT giants like TCS, Infosys, and Wipro have released their quarterly results. From October to December 2021, these companies are said to have made huge profits.

TCS is said to have made the highest profit of Rs 9,769 crore in the last quarter. TCS currently has 5 lakh 56 thousand 986 employees, out of which 2 lakh are women.