Market cap of 9 out of top 10 companies decreased by Rs 1.03 lakh crore, TCS suffered the most

TCS Buyback Offer: Acceptance ratio is just 26% less than expected, know the reason


new Delhi. Tata Group’s IT company Tata Consultancy Services (TCS) on Friday said the acceptance ratio for its Rs 18,000 crore share buyback offer is 26 per cent. This was said in a media report. This is much less than the 30-50 per cent expectation.

India’s largest IT company TCS brought its fourth buyback offer in the market on 9 March. This buyback offer closed on 23rd March.

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For every 50 shares the company will accept 13 shares
According to ET Now, for every 50 shares the company will accept 13 shares. The low acceptance ratio is because more people offered their shares than the market expected. This also means that those who wanted to take advantage of the buyback offer and buy the shares just before the buyback and then sell them would have to be satisfied with the lower returns.

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Prior to the launch of the buyback offer, analysts at Motilal Oswal had calculated a profit of around 5 per cent subject to a 30 per cent acceptance ratio and sold the unattended shares at Rs 3,818 after the buyback. However, the ratio has been low and the stock is yet to reach that figure. This means that if they sell these shares now, the actual profit for them will be even less.

TCS had offered to buyback 4,00,00,000 shares of the company at Rs 4,500 per share in excess of Rs 18,000 crore or 1.08 per cent of the total paid-up equity share capital.

Tags: TCS


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