TCS Considers Buyback Of Equity Shares, To Announce Q2 Results On October 11 – News18

Tata Consultancy Services is contemplating a buyback of its equity shares. The decision will be discussed at the TCS board meeting scheduled for October 11, 2023, as mentioned in the company’s official statement.

The TCS board will discuss a proposal for a share buyback on the day the IT major plans to reveal its Q2FY24 financial results.

According to a report by Moneycontrol, TCS launched its last share buyback in the year 2022 when the IT major bought back shares worth Rs 18,000 crore.

The issue size consisted of 4 crore shares priced at Rs 4,500 apiece with face value of Re 1 per share.

Earlier this year, two other major IT companies completed share buybacks.

In February 2023, Infosys ended its buyback after purchasing 6.04 crore of its shares for Rs 9,300 crore. The average buyback price of Infosys was Rs 1,543.1 compared to the maximum buyback price of Rs 1,850 per share.

In June, India’s fourth largest IT firm Wipro announced a Rs 12,000 crore share buyback, its largest ever. The company recorded an acceptance ratio of 77.40 percent among retail participants.

Meanwhile, in another development, TCS is reportedly planning to discontinue hybrid work starting October 1, 2023. In an internal communication, the company has instructed its employees to be present in the office for five days each week.

The directive for this transition still maintains a three-day-a-week schedule. However, managers across different divisions have been encouraging employees to attend the office on all five working days. The company will provide flexibility and hybrid policies, making exceptions as needed.

This represents a noticeable departure from TCS’ earlier position, which, from September 2022 onwards, mandated that employees follow a schedule and be present in the office for three days each week. The company had additionally cautioned employees about potential consequences if they failed to comply with this schedule.

As of the quarter ended June 30, TCS had around 615,318 employees.

This move indicates a notable change in the work-from-home policies within the IT services sector, which employs more than five million individuals in India.