Passed through a special resolution by the board of directors, the proposal saw 99.81 percent of the valid votes being in favour, the company said.
The shares in the buyback represent 2.85 percent of the total paid-up equity share capital, at Rs 2,850 a share.
India’s information technology services companies are looking at returning cash to investors as they struggle to grow business in an uncertain environment. As the traditional IT services business gets slow and automation takes over, clients are increasingly spending on digital and cloud projects.
At these, the business cycles are shorter and require companies to deploy resources at client locations, instead of offshore sites in India.
In February, prodded by activist investor Elliott Management, Cognizant Technology Solutions, which follows the offshore model like Indian IT service firms, announced it would return as much as $3.4 billion to shareholders, from dividends and share buyback.
This was followed by TCS’ buyback. In March, HCL Technologies said it would buy back Rs 3,500 crore of shares.
Last week, Infosys, under scrutiny by founder N R Narayana Murthy over alleged governance lapses, said it would return $2 billion to shareholders over the next 12 months.
TCS’ shareholder approval comes ahead of the announcement of its March quarter results on Tuesday. The stock closed Rs 7 or 0.3 percent down on Monday, at Rs 2,320.85 on the BSE exchange.
Last week, Infosys forecast lower growth for the year ahead, citing challenges for its traditional business, while struggling to win large deals in its newer offerings of artificial intelligence and cloud.
- TCS’ shareholder approval comes ahead of the announcement of its March quarter results on Tuesday
- Last week, Infy, under scrutiny by founder Murthy over alleged governance lapses, said it would return $2 billion to shareholders over the next 12 months
