TCS Q2 Results: TCS during its Q2 results announcement said that the company has approved a share buyback of Rs 17,000 crore at a price of Rs 4,150/share via the tender offer route.
A tender offer buyback is the one in which the company announces a fixed price at which it will buyback shares from the existing shareholders.
The buyback price is at a 15% premium compared to the existing share price.
"The buyback is subject to approval of the shareholders by means of a special resolution through a postal ballot," TCS said in an exchange filing.
The IT giant has also declared an interim dividend of Rs 9 per share.
Also Read: TCS Board to discuss share buyback proposal on October 11th
TCS will be buying up to 4,09,63,855 shares representing 1.12% of the total equity. The buyback size does not include transaction costs, applicable taxes and other incidental and related expenses.
This will be the fifth buyback by TCS in the last six years. Earlier, the company has already bought shares worth Rs 66,000 crore. The company's 2023 buyback price is also lower than the previous buyback price of Rs 4,500.
TCS reported a net profit of Rs 11,342 crore, which is higher than the expected profit range. The company's revenue grew by 0.5% quarter-on-quarter to Rs 59,692 crore. Operating profit or EBIT for the quarter stood at Rs 14,483 crore and EBIT was up 5.3% compared to the June quarter.