Good news for shareholders of India’s largest Information Technology (IT) services firm, TCS. The IT company has finalised December 1, 2023 as opening date of ₹17,000 crore buyback offer. You can tender the shares directly to the IT firm till December 7, 2023. Good thing is that TCS has kept 15 per cent of the total buyback size for retail investors. For every six shares held, retail investors will be able to tender one share in the buyback offer. Entitlement ratio is fixed at 17 per cent.
TCS’s latest announcement will not have any impact on the share price as the buyback record date of Noverber 25 has already passed.
Earlier, the IT juggernaut had fixed ₹4,150 as buyback price which was nearly 20 per cent premium to its share price as of the record date. Total buyback size will not be more than ₹17,000 crore.
Retail investors can tender shares held in their demat account via the tender route.
Let’s see how you can participate in TCS’s buyback:
You can participate directly from your broker’s platform. For example, if you use Zeroda, then you can follow these steps and apply in the offer from December 1, 2023:
1. Open Kite app
2. Click on portfolio. You can also visit console.zerodha.com and go to portfolio section from there.
3. Click on corporate actions
4. Under Buyback tab, click on TCS and then place order
5. Enter the quantity and click Submit.
Does Zerodha collect any charges for applying for buybacks:
Yes. Zerodha levies ₹20 + GST for processing buybacks orders.
Other apps and platforms may have a different process and charges may also differ.
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