Today, Indian IT giant Tata Consultancy Services (TCS) will release its Q2 2023 results. The market will be keenly watching the outcome of the board meeting about share buyback, though, as the IT giant has announced that the board of directors would discuss and authorize share buyback during its board meeting on October 11, 2023. When the Tata Group firm announces its fifth share buyback in the previous six years, the market expects the TCS buyback price to be between ₹4300 and ₹4500 per share, with a potential buyback value of approximately ₹18,000 crore.
TCS buyback 2023: Price, size, other expectations
Avinash Gorakshkar, Head of Research at Profitmart Securities, commented on the TCS buyback 2023, saying, “The Q2 results 2023 season will begin today with the TCS board discussing and approving the Q2FY24 results of the company.” The repurchase of shares that the Indian IT company is expected to announce today has the market on edge, though. Based on my projections, the TCS buyback would have a value of around ₹18,000 crore and a potential price range of ₹4,300 to ₹4,500 per share.
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TCS buyback history
According to data on the BSE’s official website, this would mark the IT giant’s fifth share buyback in the previous six years. Shares were repurchased by TCS in 2017, 2018, 2020, and 2022. TCS said in May 2017 that it would be repurchasing shares valued at ₹16,000 crore, with a premium of about 18%. The Indian IT major announced the buyback of shares worth ₹16,000 crore in August 2018 and November 2020, respectively, at a premium of 18% and 10%. TCS announced in February 2022 that it would be repurchasing shares worth ₹18,000 crore at a premium of around 17%.
Will Infosys, Wipro, HCL Tech follow?
According to data on the BSE website, Infosys, Wipro, and HCL Technologies are the companies that follow TCS in terms of repurchase. In November 2017, Infosys announced a buyback of shares at a premium of around twenty percent following the announcement of TC’s buyback of shares. In 2017, Infosys offered a buyback price per share of ₹575.
In a similar vein, Wipro announced its buyback in September 2017 at a 23 percent premium, with a share price of ₹240. Wipro announced a second buyback of shares in June 2019 at ₹325 a share, resulting in a premium of around sixteen percent. In December 2020, the IT ginat announced the repurchase of shares at ₹400 per share, which represents a premium of about 6%. Wipro announced a buyback of shares in June 2023 at a price of ₹445 per share, giving owners who tendered their stocks to benefit from the buyback an approximate 20% premium.
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HCL Tech announced a buyback of shares in May 2017 at ₹500 per equity share, providing a 20% premium. The HCL Tech buyback was announced in August 2018 for ₹550 per share, representing a sixteen percent premium.
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