TCS plans India's biggest buyback at Rs 16,000 cr

Tata Consultancy Services (TCS), the country’s highest-valued company on the stock market, announced a buyback of shares worth Rs 16,000 crore, the biggest ever in the Indian capital market. Under the programme, approved by its board of directors, the software services major will repurchase 56.1 million shares (2.85 per cent of its equity) at Rs 2,850 apiece. 

The buyback price is 13.7 per cent higher than TCS’ current market price and an 18.3 per cent premium to Friday’s close. Shares of the company soared after the announcement to end at Rs 2,506.50, about four per cent higher than its previous close.  Market players said further gains in the stock price could be capped because the premium offered was in line with that given by information technology (IT) firms such as Wipro and Mphasis.