TCS Buyback 2023: Acceptance Ratio Surges to 35%
Learn about TCS's 2023 buyback. acceptance ratio: 35%; 6.5 times oversubscribed. TCS continues to perform strongly in its 5th buyback, reflecting the promoters' trust.
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Tata Consultancy Services (TCS) has reported an acceptance ratio of approximately 35% for its latest buyback issue, marking an improvement from the 24% ratio observed during the 2022 buyback.
Buyback Details and Oversubscription: Strong Investor Interest
Tata Consultancy Services (TCS) has reported an acceptance ratio of approximately 35% for its latest buyback issue, marking an improvement from the 24% ratio observed during the 2022 buyback. The company had aimed to repurchase 4.09 crore shares at Rs 4,150 each and received bids for 26 crore shares.
For small shareholders, the buyback ratio was set at one share for every six shares held as of the record date, while other shareholders were eligible for two shares for every 209 shares held. The buyback offer, totaling Rs 17,000 crore, received strong investor interest, being oversubscribed 6.5 times, according to BSE data.
Promoter Participation and Shareholding Increase
Tata Sons and Tata Investment Corporation, the promoters of TCS, expressed their intention to participate in the buyback by tendering 2.96 crore shares. As a result, their combined shareholding is expected to increase from the current 72.3% to 72.41%.
Consistent Performance: TCS's Fifth Buyback Offer
This marks TCS's fifth buyback offer, following previous buybacks in 2017, June 2018, October 2020, and January 2022. The positive response from investors indicates confidence in the company's financial health and underscores its position as a prominent entity within the Tata Group.
