Mumbai: Tata Consultancy Services has fixed February 23, 2022, as the record date for determining the entitlement of equity shareholders who will be eligible to participate in its Rs 18,000 crore buyback, it said in a statement to the exchanges on Friday. This is the company’s fourth and biggest buyback in the past 5 years.

“The members of the Company have approved the buyback by passing a special resolution through postal ballot….the Company has fixed Wednesday, February 23, 2022, as the record date for the purpose of determining the entitlement and the names of the equity shareholders who shall be eligible to participate in the buyback,” TCS said in its statement to the exchanges.

On January 12, the board of directors of TCS had approved the buyback of up to 4 crore shares for an aggregate amount not exceeding Rs 18,000 crore.

The buyback size amounts to 1.08% of the total paid-up equity share capital. The company said it will buy shares at Rs 4,500 per share.

Between December 18, 2020, and January 1, 2021, the IT bellwether returned Rs 16,000 crore to shareholders in a buyback, wherein Tata Sons tendered shares worth around Rs 10,000 crore. As many as 5.33 crore equity shares—including Tata Sons’ 33,325,118—were bought back at Rs 3,000 apiece. TCS had undertaken similar repurchases in 2018 and 2017.

Ahead of the buyback, 9 promoter entities hold 72.19% in TCS. Banks, mutual funds and insurance companies held 7.8% while FPIs and FIIs held 15.23% stake in the firm. Retail investors hold about 3.88%.

During a buyback, a company repurchases its shares from existing shareholders, usually at a price higher than the prevailing market rate. As a result, the number of shares outstanding in the market reduces.

Peers Infosys Ltd. and Wipro Ltd. have over the past few years rolled out similar buybacks.

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