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TCS board to consider share buyback on October 11

The board of directors of Tata Consultancy Services (TCS) will consider the proposal for equity share buyback at its meeting, scheduled to take place on October 11, said the company in its BSE filing on Friday.

In the announcement, TCS didn’t disclose the quantum of the buyback it is considering. The last time the IT major announced a buyback was in 2022, worth ₹18,000 crore.

“Pursuant to Regulation 29(1)(b) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, this is to inform you that the Board of Directors will consider a proposal for the buyback of equity shares of the company at its meeting to be held on October 11, 2023,” TCS said in its BSE filing on Friday.

TCS has previously announced buybacks in 2022, 2020, 2018, and 2017. Its most recent buyback in 2022 performed the best, seeing record participation when it repurchased 4 crore shares at ₹4,500 apiece. However, the stock has not touched or crossed that buyback price yet. The stock’s all-time high remains ₹4,123, which it hit on October 31, 2021.

Recession fears

TCS’ share buyback comes at a time when the IT sector is grappling with global recessionary tensions, affecting its business in the US and Europe.

The board will consider the buyback proposal along with financial results on Wednesday, October 11.

Brokerage firm Citi believes that Indian IT companies like Tata Consultancy Services (TCS Ltd.), Infosys Ltd., and their peers will find it tough to meet consensus estimates for the financial year 2024. It said that in a note earlier in the day

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 ₹9,300 crore. In June, Wipro announced a ₹12,000 crore share buyback, its largest ever

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