TCS makes buyback buzz but other Indian IT firms unlikely to follow suit

Buyback tax provision and steep valuations may deter companies still playing safe in the coronavirus pandemic, say analysts

Even though industry bellwether Tata Consultancy Services (TCS) may be considering buyback of shares, other leading information technology (IT) services players are unlikely to follow suit at this juncture.

According to industry experts, a buyback of shares by other Indian IT services companies does not look attractive at this point in time, especially when they are considering conserving cash or making prudent inorganic play during this challenging business environment. Besides, the introduction of the buyback tax by the government has also made it less attractive this year, they add.

In a regulatory filing last week, TCS said the company would consider buyback