Tata Consultancy Services Ltd (TCS) today announced Rs 16,000 crore share buyback- biggest in the Indian capital market, looking to return surplus cash to shareholders.
The decision comes at a time when India's largest software services provider is under pressure of losing revenue from its clients in the US, which accounts for 65 per cent of of the $155 billion industry, under President Donald Trump's protectionist measures.
TCS said in a stock exchange filing that its board approved buyback of up to 5.61 crore shares, or 2.85 per cent of its share capital, at Rs 2,850 apiece.
The share buyback, if successful, will be India's biggest, surpassing Reliance Industries' 2012 share repurchase of Rs 10,400 crore.
"TCS Board of Directors has approved a proposal to buyback up to 5.61 crore equity shares of the company for an aggregate amount not exceeding Rs 16,000 crore," the company said in the filing.
The board meeting is the last for N Chandrasekaran as TCS chief executive before he takes over as chairman of parent Tata Sons Ltd, which controls 73.3 per cent of the software developer, tomorrow.