Tata Consultancy Services (TCS) Ltd, India’s largest software exporter, will consider a share buyback at a board meeting to be held on 20 February, in order to boost investors’ confidence in the company.
“Tata Consultancy Services Ltd has informed BSE that the board of directors will consider a proposal for buyback of equity shares of the company at its meeting to be held on February 20, 2017,” the company said in a notice to the BSE.
Information technology (IT) companies have been announcing buyback in order to restore investors’ confidence and engage in a more tax efficient way to return money to shareholders.
As of December quarter, TCS has total cash and investments of Rs 431.69 billion—up from Rs 364.84 billion a quarter ago—according to its investor presentation.
Earlier, CNBC TV reported that Infosys may consider share buyback at an estimated size of Rs12,000 crore.
On 8 February, Cognizant’s board approved to return $3.4 billion to its shareholders over the next two years through share buybacks and dividend.
Source: Mint