TCS Buyback 2020 Review
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India’s largest software service company has announced its share buyback for the year 2020. This is the 3rd buyback from TCS in last 4 years. In 2017 and 2018 also TCS has done the buyback of Rs 16,000 Cr each.
Current TCS buyback is also similar size which is Rs 16,000 Cr. The company has announced to repurchase 5.33 cr shares which are 1.42% of the total paid-up equity @ Rs 3000 per share. The price of the buyback is 9.6% premium to the previous closing day of the announcement date.
What is TCS Buyback details?
Below is the complete details about TCS Buyback. Record date, buyback open and close dates are announce in below section.
|Buyback Type:||Tender Offer|
|Buyback Offer Amount:||Rs 16000 Cr|
|Buyback Number of Shares:||5.33 Cr|
|Buyback Price:||Rs 3000|
|Buyback Offer Size (In %):||1.42%|
|Total Share Capital:||Rs 1,027,177.79 Cr|
|Face Value:||1 Per Equity Share|
Can I Invest today to participate in TCS buyback offer? No
What are TCS Buyback Important Dates?
In this section we have covered all important dates related to TCS Buyback. Dates are updated as they are announced. The most noted dates are record date and buyback open and close dates, which one should use to participate in buyback.
|Board Meeting for Buyback proposal||7th Oct 2020|
|Buyback Approval date||7th Oct 2020|
|Public Announcement of Buyback||7th Oct 2020|
|Record Date||28th Nov 2020|
|Buyback opens on/Buyback Opening Date||18th Dec 2020|
|Buyback closes on/Buyback Closing Date||1st Jan 2021|
|Cut-off date to receive completed tender forms by Registrar||3rd Jan 2021|
|Cut-off date for verification by the Registrar||11th Jan 2021|
|Cut-off date to inform Stock Exchange on acceptance or non-acceptance |
of tendered Equity Shares by Registrar
|11th Jan 2021|
|Last date of settlement of bids on the stock exchange||12th Jan 2021|
|Last date to return unaccepted shares by Registrar||12th Jan 2021|
|Last date of extinguishment of Equity Shares||19th Jan 2021|
TCS Share Holding Pattern as of Sep 2020
Stock Holding table gives a clear picture on retail investor holdings of TCS shares which helps investor to decide on participating in buyback offer. The less number of retail holdings means higher chance of acceptance in buyback under retail category which is equal to higher profit.
|Holding Type||In %|
TCS Public Announcement >>Document
TCS Draft Letter of Offer >>Document
TCS Post Buyback Public Announcement >>Document
TCS Ratio of Buyback
- Reserved category for Small Shareholders (Reserved Category) - Who holds Max Rs 2 Lakhs worth of shares @Rs 2679.65 per equity share - in such case Max 74 Equity Shares as of Record Date 28th Nov 2020.
- General category for all Shareholders other than Small Shareholders (General Category)
For Buy back shares holders are divided in 2 categories:
TCS Ratio of Buy Back
|Category||Entitlement Ratio of Buyback Per Equity Shares||Entitlement Ratio of Buyback in %|
|Reserved Category||2 Equity Share out of every 5 fully paid-up Equity Share held on the Record Date.||41.05|
|General Category||2 Equity Share out of every 165 fully paid-up Equity Share held on the Record Date.||1.21%|
Current and Upcoming Buybacks Key dates
The table below will give you a complete dashboard view for all open buyback offer in current market.
|Company Name||Buyback Type||Offer Amount||Buyback Price||CMP||Record Date||Buyback Open Date||Buyback End Date|
|eClerx Services||Tender Offer||₹303 Cr||3200||2214.35 (-1.56%)||TBD||TBD||TBD|
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Detail Article on Benefit from buyback offer >> Read
TCS Buyback Important dates - Record Date,Buyback Start and End date. Buyback Details - Buyback Price, Buyback Offer Size, Buyback Number of Shares, Retail Investors limit. What is the record date for TCS? How can I apply in TCS Buyback offer?
Company Contact Information
TATA Consultancy Services Ltd,
9th Floor Nirmal Building,
Registrar Contact Information
Last Updated on 2021-01-25T21:35:05+00:00
The Record Date for TCS Buyback offer is 28th Nov 2020
Which means you should hold the TCS share in your demat account by closing session of 28th Nov 2020. Share purchased on and before (28th Nov 2020) - 2 business days will be available in your demat account by 28th Nov 2020.
Its all depend on acceptance ratio which usually announce with Letter of Offer. Lets assume if you have TCS shares at ₹2735 and buyback offer price is ₹3000, you can get ₹265 per accepted share. If you hold 73 shares of TCS and if proportionate acceptance is between 33% and 50%, in such case you are eligible to sell your 24 to 36 shares with the gain from buyback of ₹6360 to ₹9540.
The percentage of proportionate acceptance varies from company to company. This percentage can be also 100% which means that company buys all of your shares.
TCS Buyback Profit Calculation
% Share Accepted No of Shared Accepted Gain from Buyback Offer 33% 24 ₹6360 50% 36 ₹9540 75% 55 ₹14575 100% 73 ₹19345
Steps to participate in TCS buyback:
- On Record date (28th Nov 2020) you must have share of TCS in your demat account/physical form. Depositing of share in your DP account usually take T+2 days, so you need to plan your buying accordingly.
- After that company announces buyback open and close window, so you need to tender your share in buyback process. You can do this online or contact your broker to tender your share in buyback, so he can place a request on your behalf.
- Next step is with registrar - depend on buyback acceptance ratio, your shares will be sold in buyback process and fund will directly debited in your bank account. Any rejected share will be revert in your demat account which you can sell in open market or hold for long term gain.
Share holders who hold less than 2 lakh worth of shares are consider in Retail Category. All others will consider in General Category. Last trading price on record date will be used to calculate the eligibility criteria.
As this is a buyback tender offer, shares are accepted in proportionate basis. Proportionate acceptance / rejection will be returned back to the eligible shareholders directly by the Registrar on or before 12th Jan 2021.
Buyback opening date for TCS: 18th Dec 2020
Buyback closing date for TCS: 1st Jan 2021
This is the window when you need to submit your application for proposal for share buyback. If you are submitting tender forms or submitting physical share certificates, it must reach to registrar by 3rd Jan 2021.
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