TCS board to consider buyback proposal on Friday
The board of Tata Consultancy Services (TCS) board will meet Friday to consider a proposal to buy back shares, the company said in a stock exchange filing late on Tuesday.
“… the Board of Directors will consider a proposal for buyback of equity shares of the Company, at its meeting to be held on June 15, 2018,” TCS said in a filing late Tuesday.
Media reports peg the buyback to the extent of Rs 10,000 crore. TCS has said previously that it will pay out 100 percent of its free cash flows to shareholders. In the 2017-18 financial year, TCS made a 118 percent payout.
The stock has been in an uptrend so far in the year 2018, up 34 percent while on a 1-year basis, the stocks rose by nearly 50 percent. The stock is trading near its record high of Rs1.837.
In 2017, the company had announced a Rs 16,000-crore buyback of up to 56.1 million shares at Rs 2,850 a piece.
On Tuesday, TCS also announced expansion of its partnership with M&G Prudential to USD 1.36 billion. According to the agreement, the partnership will cover 5.8 million policies. It will get USD 668 million in business from Prudential for the 10-year contract.
The partnership further will bolster TCS’ position as the market leader in UK life and pension administration, with more than 18 million policies being administered by its BFSI digital platform.
