Street signs: Arbitrage opportunity from TCS buyback, MFI stocks & more

Brokerages are advising their retail clients to buy shares of TCS to gain from the arbitrage opportunity created by its Rs 18,000-crore buyback

Arbitrage opportunity from TCS buyback

Brokerages are advising their retail clients to buy shares of Tata Consultancy Services (TCS) to gain from the arbitrage opportunity created by its Rs 18,000-crore buyback. The information technology major has fixed the buyback price at Rs 4,500 per share, a premium of 18 per cent to its last close. “We expect the acceptance ratio to be in the range of 30-50 per cent, which could give a potential return of 5-9 per cent with a time frame of 1-2 months. Retail investors looking for short-term opportunities can buy the shares of TCS from the