Tata Sons bags Rs 10,278 crore from TCS buyback

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Tata Group’s investment holding company Tata Sons has bagged a whopping Rs 10,278 crore from the Tata Consultancy Services (TCS) share buyback, as suggested by regulatory filings.
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It was in February that TCS, India’s leading software services exporter, had approved the Rs 16,000-crore buyback because of increasing pressure from investors for returns, given that the IT sector had started to show signs of slow growth.

The buyback was managed by Citigroup Global Markets and JM Financial and was carried out through a fortnight-long tender offer that was open from May 18th to May 31st.

In the given period, TCS bought back 561,40,350 equity shares, which represents about 3% of its total equity. On its part, Tata Sons tendered 360,63,787 shares at Rs 2,850 per share and was the biggest participant in the buyback.

Other large shareholders that took part in the buyback were the Government of Singapore (2.1%), Copthall Mauritius Investment (1.17%), and Europacific Growth Fund (1.01%).

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Tata Sons is the biggest shareholder in TCS, holding more than 73% stake, and requires funds to invest in other subsidiaries like Tata Motors and Tata Steel.

It also has to pay Japanese telecom company NTT Docomo a sum of $1.17 billion to resolve the recent dispute.

(Image source The Quint)
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