Tata Consultancy Services up 4% as Board clears buyback
The TCS scrip today jumped 4%, adding Rs 19,379 crore to its market valuation, after the company said its Board has approved a share buyback plan of up to Rs 16,000 crore.business Updated: Feb 20, 2017 18:03 IST
The TCS scrip today jumped 4%, adding Rs 19,379 crore to its market valuation, after the company said its Board has approved a share buyback plan of up to Rs 16,000 crore.
The stock rose by 4.08% to end at Rs 2,506.50 on BSE. During the day, it had gained 6% to Rs 2,555.
On NSE, shares of the company went up by 3.91% to close the day at Rs 2,502.20.
Led by the sharp gain in the stock, the market valuation of the country’s largest software services firm surged Rs 19,379.76 crore to Rs 4,93,887.76 crore.
On the volume front, 1.98 lakh shares of TCS were traded on BSE and over 19 lakh shares changed hands at NSE during the day.
The Tata Group company said the proposed shares represent 2.85% of the total paid up equity share capital at Rs 2,850 per equity share.
“Tata Consultancy Services (TCS) Board of Directors has approved a proposal to buyback up to 5.61 crore equity shares of the company for an aggregate amount not exceeding Rs 16,000 crore,” TCS said in a BSE filing.
The buyback is proposed to be made from the shareholders of the company on a proportionate basis under the tender offer route using the stock exchange mechanism, it added.