Ratan Tata's company will buyback of shares next week, small investors should know these things

Ratan Tata’s company will buyback of shares next week, small investors should know these things


New Delhi. Tata Group’s IT giant Tata Consultancy Services (TCS) has announced share buyback. Meaning the company wants to buy back the shares from its shareholders at a substantial premium. TCS has brought a buyback offer of Rs 18,000 crore. In this, the company will buy 4 crore equity shares from its shareholders at the rate of Rs 4500 per share.

23 February is the record date
In this way, according to the current price of the share, investors can make a profit of about 20 percent in the short term. The record date for equity shareholders eligible to participate in the TCS share buyback offer has been fixed as Wednesday, February 23. In this way, investors who want to participate in the buyback offer of TCS can buy shares of the company till the record date.

Also read: SEBI gave big relief to listed companies, now they will not have to do this work, know full details

Know what Motilal Oswal said
According to brokerage firm Motilal Oswal, the minimum acceptance ratio can be between 30-50%. This means that out of every 10 shares offered by you, the company will buy at least 3 to 5 shares. Motilal Oswal said, “Retail investors who want to make money in the short term can buy TCS shares (worth Rs 2 lakh till the record date) from the open market and tender them in the buyback offer.”

As per the price of Rs 4500 per share offered by TCS in the buyback offer, a maximum of 44 shares can be offered by the retail shareholders.

Companies Tata Sons and Tata Investment Corporation Limited (TICL) also want to participate in this buyback offer of TCS. TCS had given this information last month. Tata Sons plans to offer 2.88 crore shares and 11,055 shares of TICL for buyback. The previous buyback price of TCS was around ₹16,000 crore which opened on December 18, 2020 and closed on January 1, 2021.

Tags: Ratan Tata, stock market, TCS


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