Tata Consultancy Services Limited (TCS) is engaged in providing information technology (IT) services, digital and business solutions.
The Company’s segments include banking, finance and insurance services (BFSI); manufacturing; retail and consumer packaged goods (CPG); telecom, media and entertainment, and others, such as energy, resources and utilities, hi-tech, life science and healthcare, s-Governance, travel, transportation and hospitality, and other products.
Tata Sons awarded $ 9,997 million shares of Tata Consultancy Services (TCS) during a major $ 16,000 redundancy offer recently completed. TCS’s largest shareholder, Tata Sons, handed over more than 3,33 crore shares at the time of delivery, according to the official completion.
India’s largest IT services company Tata Consultancy Services (TCS) on Wednesday announced a uhlelo 16,000 crore acquisition plan that will start on December 18 and close on January 1, 2021. Last month, TCS shareholders approved the buy-up to -5,33,33,333 company equity shares in ₹ 3,000 total cash prize not exceeding ,000 16,000 crore.
The IT Manager will send a Letter of Offer to investors on or before December 15, 2020. The date for recording this purpose is November 28, 2020, TCS said in a regulatory file.
TCS said that in addition to the 5.33 crore equity shares purchased under the gift for Rs 3,000 each and in total, Tata Sons’ 3,33,25,118 shares were accepted under the promise of a refund. The total amount used for the return offer – opened on December 18, 2020 and closed on January 1, 2021 – was around Rs 16,000 crore, as a completion.
Its services portfolio consists of IT and assurance services, business intelligence and performance management, business process services, cloud services, connected marketing solutions, consulting, engineering and industrial services, enterprise solutions, IT infrastructure services, mobility products and services and platform solutions.
Its software offerings include Digital Software and Solutions, TCS BaNCS and TCS MasterCraft, among others. It serves industries, including insurance, healthcare, retail, telecom and others.
Buy Back Offer Deal
| Buyback Type: | Tender Offer |
| Buyback Record Date: | 28 NOV 2020 |
| Buyback Opening Date: | 18 DEC 2020 |
| Buyback Closing Date: | 01 JAN 2020 |
| Buyback Offer Amount: | ₹ 16000 Cr |
| Date of Board Meeting approving the proposal: | 07 OCT 2020 |
| Date of Public Announcement: | 07 OCT 2020 |
| Buyback Offer Size: | 1.42% |
| Buyback Number of Shares: | 5,33,33,333 |
| Price Type: | Tender Offer |
| FV: | 10 |
| Buyback Price: | ₹ 3000 Per Equity Share |
Details of Buyback
Tata Consultancy Services Limited (TCS) Board of Directors of the Company at its meeting held on 07.10.2020 has approved a proposal to buy back up to 5,33,33,333 Equity Shares of the Company for an aggregate amount not exceeding 16,000 crores (hereinafter referred to as the “Buyback Size”) being 1.42% of the total paid-up equity share capital, at Rs. 3000 per Equity Share (hereinafter referred to as the “Buyback Price”.
Salient financial parameters
| Particulars( in Crs) | Mar-15 | Mar-16 | Mar-17 | Mar-18 | Mar-19 | Mar-20 |
| Sales | 94,648 | 1,08,646 | 1,17,966 | 1,23,104 | 1,46,463 | 1,56,949 |
| Expenses | 70,167 | 77,969 | 85,655 | 90,588 | 1,06,957 | 1,14,840 |
| Operating Profit | 24,482 | 30,677 | 32,311 | 32,516 | 39,506 | 42,109 |
| OPM % | 26% | 28% | 27% | 26% | 27% | 27% |
| Other Income | 3,720 | 3,084 | 4,221 | 3,642 | 4,311 | 4,592 |
| Interest | 104 | 33 | 32 | 52 | 198 | 924 |
| Depreciation | 1,799 | 1,888 | 1,987 | 2,014 | 2,056 | 3,529 |
| Profit before tax | 26,298 | 31,840 | 34,513 | 34,092 | 41,563 | 42,248 |
| Tax % | 24% | 24% | 24% | 24% | 24% | 23% |
| Net Profit | 19,852 | 24,270 | 26,289 | 25,826 | 31,472 | 32,340 |
| EPS in Rs | 43.95 | 57.82 | 62.19 | 67.6 | 83.93 | 86.24 |
Profit from the buyback on the bases of acceptance Ratio
Buy 66 Shares at CMP of Rs.2752( 2,00,000/3000=66)
| Acceptance Ratio | 33% | 50% | 75% | 100% |
| Amount Invested in Buyback | 181632 | 181632 | 181632 | 181632 |
| No. of Shares buyback | 21 | 33 | 49 | 66 |
| BuyBack Profit | 5208 | 8184 | 12152 | 16368 |
| Profit | 2.87% | 4.5% | 6.6% | 9.1% |
How to Participate in buyback?
| 1. Firstly, to be eligible for the buyback the investor should have shares of Tata Consultancy Services Limited (TCS) in demat or physical form as on record date (28.11.2020). |
| 2. Once you have shares in demat, you can participate in the buyback process which is opening from [18.12.2020 to 01.01.2021], by selling your shares through your broker on NSE or BSE. |
| 3. Then on [12.01.2021]the payment will be given to you for accepted shares and unaccepted shares will be returned to your demat account. |
