Corporate Action – Buyback of TCS

iamshrimohan · October 13, 2023, 1:14pm

The board of Tata Consultancy Services has approved a buyback of 40,963,855 equity shares, (via tender-offer route) totaling up to ₹17,000 crore, priced at ₹4150.00 per share. According to SEBI rules, 15% of the total tender offer must be reserved for small shareholders (investors holding no more than Rs 2 lakh worth of shares as of the record date).

Currently, there are 16.44 crore investors who qualify as small shareholders. Consequently, out of the total 40,963,855 shares, 61,44,578 will be allocated to this category, indicating an acceptance ratio of approximately 3.75%*.

The company has yet to announce the record date and provide additional offer details. Stay tuned to this thread for updates. Do share your thoughts on this buyback. Please feel free to share your opinions.

iamshrimohan · November 16, 2023, 5:18am

Update:

TCS has fixed the record date as 25 November 2023 for its buyback.

Buyback Details
CMP (16-Nov-23)	3,445.00
Buyback Price	4,150.00
Retail Size	200000
Shares for Retail	48
Investment	1,65,360.00

Buyback Mathematics
Acceptance Ratio (%)	10	20	30	40	50	60	70	80	90	100
Shares Accepted	4	9	14	19	24	28	33	38	43	48
Amount Received from Buyback	16600	37350	58100	78850	99600	116200	136950	157700	178450	199200
Profit from Buyback	2,820.00	6345	9870	13395	16920	19740	23265	26790	30315	33840
Remaining Shares	44	39	34	29	24	20	15	10	5	0
Profit (%)	1.71%	3.84%	5.97%	8.10%	10.23%	11.94%	14.07%	16.20%	18.33%	20.46%

Notes:

The share value must be below Rs 2 lakhs on the Record Date. Therefore, the number of shares needed to qualify as a retail investor may fluctuate depending on the price on that date. For a cautious estimate, the Record Date’s closing price is assumed to be ₹4150 per share, matching the Buyback Offer Price.
Gains from buybacks are exempt from tax.
Profit and loss calculations are based on gross amounts and exclude any fees or charges.

Lelouche · November 30, 2023, 5:11am

Hi, I am not able to see the shares bid for buyback in Dhan

iamshrimohan · December 1, 2023, 4:24am

@Lelouche please share your UCC, will get this checked.

iamshrimohan · December 1, 2023, 4:29am

Update:

Buyback Entitlement Ratio
Reserved Category for Small Shareholders : 1 Equity Share for every 6 Equity Shares

What does it means?
If you hold 6 shares of TCS (as on the Record Date), 1 share will be tendered for the buyback.

HIR · December 1, 2023, 5:13am

@iamshrimohan
i hold 11 TCS, how to sell 1 share in this buyback?

iamshrimohan · December 1, 2023, 5:27am

@HIR on Dhan web when you opt for buyback, you can tender all the 11 shares towards buyback. As the entitlement ratio is 1 for 6, at least 1 share in your case will be bought back. More could also be bought incase the participation is less.

HIR · December 1, 2023, 5:48am

but my question i how to opt for that, I don’t see any option

iamshrimohan · December 1, 2023, 6:16am

@HIR go to money > Share buyback. Refer SS

PS: I dont hold any TCS shares and hence not shown in my case.

SSV · December 4, 2023, 7:05am

I am unable to see any open offers in Buy back. Why. I am having 25 shares as on record date an I am eligible for 4 shares of buy back. Please help me.

iamshrimohan · December 4, 2023, 7:14am

Hi @SSV Welcome to the Dhan community! Firstly we would ask you to choose a different username instead of your mobile number to safeguard your privacy.

Now as you’ve acquired TCS shares through MTF, you won’t qualify for the buyback, as stocks obtained through MTF are pledged. Only freely held shares can be tendered for the buyback. Should you wish to take part in the buyback, you’ll need to settle your MTF position by funding the necessary amount.