Since the day tcs declared it’s intention of buying it’s share back i have been wondering instead of buying few of TCS shares in delivery how about buying TCS futures keeping in mind that by the time of expiry i will roll-over my position. Historically i have observed that TCS share price reaches around it’s buyback price so to take an advantage of this probability i would like to explore this possibility by rolling over my position until it reaches around 4500.
However I’m not sure how would futures price of a share be impacted by a corporate action like buy backs…does the futures price actually move along with underlying when companies buy back it’s shares or it will attract some sort of adjustment in terms of lot size or price or anything else which i can not think of which my prevents futures prices from moving in accordance with underlying?
Please share your thoughts,it will help me a lot.
What has happened in past may not always happen in future 
That’s why i used probability word. I understand the risk associated with price moments but i need clarity on technicalities and effects of buy backs on futures.
Thanks
AFAIK, this doesn’t happen…
Another way to play this can be to buy limited shares from the market right now & apply for the buyback. The retail category had 100% Acceptance Ratio the last two times, so even if it falls to 50%, can make decent profit.
Explained here: TCS buyback: Retail investors can buy now and tender for a quick 10-20% gain - The Economic Times
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This is exactly what anil singhvi of zee business advised. He said the following
2,00,000 / 4500 = 44 shares.
Buy this now and on the buy back date tender this to tcs. Even if acceptance ratio is 50 percent the balance you can hold as your average cost would have fallen due to profits of the accepted 50 percent
I sure over period of time the market price will adjust to 4500.
Discl views are of anil singhvi in one of the you tube video
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@shubhs9 can you please help me with this query