The board of TCS (Tata Consultancy Services) in its meeting held on January 12, 2022, had approved buyback of 4 crore equity shares aggregating up to Rs. 18,000 crore at Rs. 4,500 per share. The company has fixed February 23, 2022, as the record date to determine the shareholders who will be eligible for the buyback. You can check the announcement from the company here.
You will be eligible for buyback if you have bought shares on or before February 21, 2022, the ex-date is February 22, 2022.
How do I apply for the TCS buyback?
The TCS buyback tender window will open on March 9, 2022 and close on March 23, 2022. You can tender the shares during this period via Console. You can check out the process here.
Buyback Schedule
| Event | Date |
|---|---|
| Buyback Opening Date | March 9, 2022 |
| Buyback Closing Date | March 23, 2022 |
| Credit of payment for accepted shares/credit of unaccepted shares to demat account | March 28, 2022 |
You can keep track of all the latest Buybacks, Takeovers, Delistings on Bulletin.
What are the categories in which I can tender shares in buyback?
There are two categories Retail and General through which one can tender shares in the buyback. The value of shares held in the demat account by February 23, 2022 (record date) end-of-the-day will determine the category through which one will be eligible to apply.
All shareholders holding shares worth Rs. 200,000 or less will be considered under the Retail category. While those holding shares worth more than Rs. 200,000 will be considered under the General category.
| Entitlement Ratio | |
|---|---|
| Retail Category | 1 share for every 7 shares held on record date |
| General Category | 1 share for every 108 shares held on record date |
You can check out more details here.
I’ve pledged shares of TCS, will I be eligible for buyback?
Yes, even if the shares are pledged, you are eligible for all corporate action benefits. However, you will have to unpledge the shares before tendering them in the buyback.
Do I need to submit POA to tender shares in buyback?
POA is not needed to tender shares in the buyback. You can apply for buyback by authorizing CDSL TPIN and OTP.
I had sold TCS shares after the record date, can I still take part in buyback?
Yes, as you were holding the shares on record date you are eligible. You can buy the shares back and tender them in the buyback.
Can I tender more shares than I’m entitled for?
If you tender more shares than your entitlement, then whether these additional shares will be accepted for buyback or not will solely depend on the acceptance ratio decided by the company. The share which are not accepted will be credited back to your demat account by the RTA.
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