Tata Consultancy Services' Rs 16,000-cr buyback offer to open on Dec 18

India's largest IT services firm Tata Consultancy Services (TCS) on Wednesday said its up to Rs 16,000-crore share buyback programme will commence on December 18 and close on January 1, 2021.

Last month, TCS shareholders had approved a proposal to buy back up to 5,33,33,333 equity shares of the company at Rs 3,000 per scrip for an aggregate amount not exceeding Rs 16,000 crore.

"In accordance with the SEBI (Buy-back of Securities) Regulations, 2018, the Letter of Offer will be dispatched to eligible shareholders on or before December 15, 2020. The record date for this purpose is November 28, 2020...," TCS said in a regulatory filing on Wednesday.

It included a schedule of activities related to the buyback, which showed date of opening of the buyback offer as December 18, 2020 and closing as January 1, 2021.

The last date of settlement of bids on the stock exchanges is January 12, 2021.

TCS' smaller rival Wipro has also announced a buyback plan for up to Rs 9,500-crore at Rs 400 per equity share.

TCS CEO and Managing Director Rajesh Gopinathan had earlier said the company is focused on its policy to return capital to shareholders.

The Mumbai-based company's cash reserves stood at Rs 58,500 crore as of September 2020.

Last year, TCS had offered a special dividend and this time it is undertaking a buyback, he had noted.

In October last year, TCS' board had declared a special dividend of Rs 40 per equity share. In 2018, TCS had undertaken a share buyback of about Rs 16,000 crore, while it had conducted a similar share purchase exercise in 2017 also.