- The ultimate list of eligible owners will be announced on November 25, 2023.
- The IT giant has notified Indian stock exchanges that the buyback record date will be on an ex-date basis.
- TCS is anticipated to record subpar results because a significant portion of its business comes from these nations.
The ultimate list of eligible owners will be announced on November 25, 2023, according to Tata Consultancy Services (TCS), which has established a record date for the share repurchase.
The IT giant has notified Indian stock exchanges that the buyback record date will be on an ex-date basis. This implies that TCS shares will trade on Friday of the next week, November 24, 2023, ex-buyback.
TCS buyback 2023
Shares of TCS may be tendered in the ₹17,000 crore Tata Group firm buyback offer by short-term investors who purchase the company up until November 24, 2023, and hold the shares on November 25, 2023.
The economic difficulties facing the US and Europe are predicted to cause IT companies to release disappointing results in the upcoming quarters. In the next quarters, TCS is anticipated to record subpar results because a significant portion of its business comes from these nations.
In this repurchase offer, which is being made available at a price of ₹4,150 a share, short-term investors have a terrific chance to tender TCS shares.
According to Profitmart Securities’ Head of Research Avinash Gorakshkar, there isn’t a trigger that might drive up the price of TCS shares, thus short-term investors should “tender” their shares in the impending buyback offer. In the short run, this share buyback aims to reduce the likelihood of a retail sell-off.
The senior vice president of research at Mehta Equities, Prashanth Tapse, gave short-term traders advice on how to produce respectable returns based on the estimated entitlement ratio by purchasing TCS before the record date.
Investments should be made in 48 shares (₹200000/4150) to receive the maximum entitlement under the ₹2,00,000 retail category, as the revenue from the buyback of shares is tax-exclusive.