Mumbai, Feb 16 (IANS) Global software major Tata Consultancy Services Ltd (TCS) proposes buyback of equity shares of Re 1 face value, said the IT major on Thursday,
"The Board of Directors will consider a proposal for buyback of equity shares of the company at its meeting to be held on February 20, 2017," said the flagship company of the Tata Group in a regulatory filing to the BSE.
As news spread about the buyback move, the city-based company's blue chip scrip gained Rs 31.20 per share on the BSE to close at Rs 2,446.90 as against Tuesday's closing price of Rs 2,415.70 and after opening at Rs 2,450 when trading began earlier in the day.
The share value of the $16.5-billion TCS rose to Rs 2,477.50 and dipped to Rs 2,436.30 during the intra-day trading session.
The company's shares are also listed for trading on the National Stock Exchange (NSE) here. It had 1,970,427,941 shares outstanding as on December 31.
The outsourcing firm's move comes a week after the US-based software major Cognizant Technology Solutions Corporation said its board had approved to buyback equity shares and pay $3.4 billion to its investors over the next two years through repurchase and dividends.
Amidst media reports and demand from two of its former directors for share buyback, software major Infosys Ltd, however, clarified that it would not comment on rumours or speculations.
"There have been several reports in the media that the Board is meeting over the next few days to consider Rs 12,000-crore share buyback. The company would like to clarify that its policy is not to comment on rumours or speculations," said the Bengaluru-based company in a filing to the BSE.
Infosys' ex-Chief Financial Officers and ex-Directors T.V. Mohandas Pai and V. Balakrishnan had through the media recently urged the company to go for a buyback of shares as it had cash reserves of Rs 35,697 crore at the end of the third quarter (October-December) of fiscal 2016-17.