Buyback
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Buyback is when a company decides to buy some of its listed shares back from stock market investors.
Often, buybacks can offer many short-term investment opportunities. This is because companies usually announce a buyback at a price higher than the existing market price. So, many short-term investors look to buy the shares of the company at the lower market price and submit them in the company’s buyback.
TCS Buyback
- The Board of TCS (Tata Consultancy Services) in its meeting held on January 12, 2022, approved buyback of 4 crore equity shares aggregating up to Rs. 18,000 crore at Rs. 4,500 per share. The record date to be eligible for the buyback was set as February 23, 2022. Click here to read the company announcement.
- As a shareholder, you are eligible to participate in the share buyback if you had bought shares on or before February 21, 2022, the ex-date was February 22, 2022.
- Note: Please ensure that you tender your shares for the buyback through the buyback window. Any tender offer made post the closure of the offer window will not be considered.
How do I apply for the TCS buyback?
- The TCS buyback tender window will open on March 9, 2022 and close on March 23, 2022. You can tender the shares during this period via this page
Event Date Buyback Opening Date March 9, 2022 Buyback Closing Date March 23, 2022 What are the categories in which I can tender shares in buyback?
- There are two categories-Retail and General through which one can tender shares in the buyback. The value of shares held in the demat account as of February 23, 2022 (record date) end-of-the-day will determine the category through which one shall be eligible to apply.
- All shareholders holding shares worth Rs. 200,000 or less will be considered under the Retail category. While those holding shares worth more than Rs. 200,000 will be considered under the General category.
Category Entitlement Ratio Retail Category 1 share for every 7 shares held as on record date General Category 1 share for every 108 shares held as on record date To learn more about the buyback, click here
I have pledged shares of TCS, will I be eligible for buyback?
- Yes, even if the shares are pledged, you are eligible for the buyback. For this, you do not need to give any unpledge request for the shares, once buyback request is placed from your end, system will automatically unpledge the shares. Please note, the system will accept your TCS share buyback request only if you have enough margin after the release of such shares for the buyback. Therefore, please ensure sufficient margin in your account.
I have taken a Margin Trading (MTF) position in TCS, will I be eligible for buyback?
If you have a Margin Trading position in TCS as on record date, you are eligible to apply. However, please note that you would need to first convert your Margin Trading position to a Normal position by placing a request with Customer Service. Once the position is converted to Normal, you will be eligible to apply for the buyback.
Do I need to submit Power Of Attorney (PoA) to tender shares in buyback?
No, PoA is not needed to tender shares in the buyback. You can apply for buyback by authorizing NSDL MPIN and OTP.
I had sold TCS shares after the record date, can I still take part in buyback?
Yes. Since you were holding the shares on record date, you are eligible to apply. You can buy the shares back and tender them in the buyback.
Can I tender more shares than I’m entitled for?
If you tender more shares than your entitlement, then whether these additional shares will be accepted for buyback or not will solely depend on the acceptance ratio decided by the company. The share(s) which do not get accepted shall be credited back to your demat account by the RTA.
