TCS Buyback 2022 Record Date, Buyback Price, Entitlement Ratio

TCS Buyback 2022 description – Tata Consultancy Services Limited, initially started as “Tata Computer Systems” was founded in 1968 by division of Tata Sons Limited. TCS is the largest IT services company in the world by market capitalization. It is a subsidiary of the Tata Group and operates in 149 locations across 46 countries.

In 2015, It was ranked 64th overall in the Forbes World’s most innovative companies. TCS is one of the largest private-sector employers in India, and the fourth-largest employer among listed Indian companies. It has crossed more than 500,000 employees as of 8 July 2021.

TCS Business and Technology Services help enterprises become future ready with its offerings across the digital technologies including Cloud, IoT, Business Operations, Infrastructure, Cybersecurity, Blockchain, Data and Analytics, Quality Engineering and Automation.

TCS Buyback 2022 Details

Buyback Dates	9 – 23 March 2022
TCS Buyback Price	INR4,500 per share
Buyback Offer Size	4,00,00,000 shares
Buyback offer as % of total shares	1.08%
Offer Amount	INR18,000 crore
Offer Type	Tender
Promoter Participation	Yes
Face Value	INR1 per share
Listing At	BSE, NSE

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TCS Buyback Dates (Timeline)

Board Meeting for Buyback Proposal	12 January 2022
Buyback Approval Date	12 January 2022
Public Announcement of Buyback	14 January 2022
TCS Buyback Record Date	23 February 2022
Buyback Opening Date	9 March 2022
Buyback Closing Date	23 March 2022
Cut-off Date to receive completed tender forms by Registrar	23 March 2022
Verification Date by the Registrar	31 March 2022
Return of unaccepted shares by Registrar	1 April 2022
Extinguishment of accepted shares	8 April 2022

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Registrar of TCS Buyback 2022

Link Intime India Private Limited 
C-101, 1st Floor,
247 Park, Lal Bahadur Shastri Marg,
Vikhroli (West), Mumbai 400 083,
Maharashtra, India
Phone: +91 22 4918 6200
Fax: +91 22 4918 6195
Email: [email protected]
Website: www.linkintime.co.in

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Manager of TCS Buyback 2022

JM Financial Limited
7th Floor, Cnergy,
Appasaheb Marathe Marg,
Prabhadevi, Mumbai – 400 025,
Phone: +91 22 6630 3030; +91 22 6630 3262
Fax: +91 22 6630 3330
Email: [email protected]
Website: www.jmfl.com

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TCS Buyback 2022 Documents

• Tender Form for Demat Shares
• Tender Form for Physical Shares
• Offer Letter
• Draft Letter of Offer
• Public Announcement
• Upcoming Share Buyback

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Pre-Buyback Shareholding Pattern of TCS

Particulars	No. of Share Holders	No. of shares	% of shares
Promoters	4	2,67,02,04,298	72.19
DIIs/MFs	460	28,83,74,333	7.80
FIIs/FPIs/NRIs	34,750	56,33,00,352	15.23
Resident Individuals	15,72,915	14,35,20,206	3.88
Clearing Members	311	5,42,300	0.01
Bodies corporate	6,291	3,31,09,884	0.90
Grand Total	16,14,736	3,69,90,51,373	100.00

TCS Buyback Entitlement Ratio

Shareholder Category	Entitlement Ratio	Entitlement Ratio (in %)
Small Shareholders (less than INR2 Lakh on record date)	1/7	14.28
General category (for all other Eligible Shareholders)	1/108	0.92

Small Shareholder is defined as shareholder who holds shares worth less than INR2,00,000 as on record date.

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TCS Limited’s Financial Performance

	FY2019	FY2020	FY2021
Total Income	1,46,463	1,56,949	1,64,177
Total Expenses	1,06,957	1,14,840	1,17,631
Net income	31,472	32,340	32,430

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Necessity of the Buyback

• The buy-back gives an option to the equity shareholders to either participate in the buy-back and receive cash in lieu of Equity Shares accepted under the buy-back.
• The buy-back helps to return surplus cash to its shareholders, in proportion to their shareholding, thereby, enhancing the overall returns to shareholders.
• The buy-back would help in improving Earning per share (EPS), Return on asset (ROA) and Return on equity (ROE) ratios of the Company.
• The buy-back, which is being implemented through the Tender Offer route as prescribed under the Buyback Regulations, would involve a reservation for small shareholders as defined in the Buy-back Regulations.

Process to Participate in the TCS buyback

All eligible Shareholders of the Company who own Physical Shares or Demat Shares on the Record Date may participate in the buyback offer through their Stock Broker. The eligible shareholder who holds the shares in Demat form must notify their broker of the details of the Equity shares that they wish to tender in the Buyback Offer.

The shareholder must transfer the tendered shares to the clearing corporation’s Special account. In turn, the broker would place a buyback order on the stock exchange.

The eligible shareholder who owns the shares in physical form must present their broker with the original share certificates and supporting documents. After document verification is complete, the broker places an order on the stock exchange and submits the original share certificate and TRS (Transaction Registration Slip) to the registrar.

Working Calculation of Amount Invested in TCS Buyback

Maximum market value of a share holder as on record date	INR2,00,000
Buyback price	INR4,500
Maximum shares of a shareholder as on 12 January (2,00,000/4,500)	44 shares
Closing price of share as on 12 January 2022	INR3,859.90
Amount Invested in buyback (3,859.90 x 44 shares)	INR1,69,836

Profit from the TCS buyback by acceptance ratio

Acceptance ratio	Amount invested in buyback	No. of shares bought back	Buyback Profit	Profit in %
30%	1,69,836	13	8,321	4.9
40%	1,69,836	17	10,882	6.4
50%	1,69,836	22	14,082	8.3
60%	1,69,836	26	16,643	9.8
70%	1,69,836	30	19,203	11.3

Frequently Asked Questions