India’s top software services firm Tata Consultancy Services Ltd (TCS) on Monday said it would buy back up to Rs 160 billion ($2.39 billion) worth shares.
The company said in a stock exchange filing that its board approved the buyback of up to 56.1 million shares, or 2.85% of its share capital, at Rs 2,850 apiece.
“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.
The buyback is subject to approval of the members by means of a special resolution through a postal ballot, it said.
The public announcement setting out the process, timelines and other requisite details will be released in due course in accordance with the Buyback Regulations.
TCS shares rose as much as 6.1% on the news.