Home World Business TCS shareholders approve Rs 16,000-crore share buyback

TCS shareholders approve Rs 16,000-crore share buyback

1
0
SHARE

Buyback programme saw 99.81% of the total number of valid votes being cast in favour of the proposal

Ayan Pramanik  |  Bengaluru  April 17, 2017 Last Updated at 18:30 IST

Tata Consultancy Services, India’s largest software exporter on Monday said its shareholders have approved Rs 16,000 crore plan, as investors look to boost returns in the wake of slowing growth of the IT services sector.

The buyback programme, which was passed through a special resolution, saw 99.81% of the total number of valid votes being cast in favour of the proposal, the company said in a regulatory filing.

The proposed shares under the buyback represent 2.85% of the total paid up equity share capital at Rs 2,850 per equity share. In February, the board of had approved the proposal to buy back up to 5.61 crore equity shares for an aggregate amount not exceeding Rs 16,000 crore.

India’s IT services firms are looking at returning cash to investors as they struggle to grow business in an uncertain environment. As traditional IT services business slow and automation takes over, clients are increasingly spending on digital and cloud projects, where business cycles are shorter and requires firms to deploy resources at client locations instead of offshore sites in India.

In February, prodded by activist investor Elliott Management, Cognizant Technology Solutions, which follows the offshore model like Indian IT services firms, announced that it would return as much as $ 3.4 billion to shareholders, which includes dividends and

This was followed by TCS’s Rs 13,000 crore buyback. In March, HCL Technologies said it would buyback Rs 3,500 crore of shares. Last week, Infosys, which is under scrutiny by its founder N R Narayana Murthy over governance lapses, said it would return as much as $ 2 billion to shareholders over the next 12 months.

The approval comes ahead of fourth quarter results on Tuesday.

stock closed Rs 7 or 0.30 per cent down at Rs 2320.85 on the Bombay Stock Exchange on Monday. Last week, Infosys forecast lower growth for the year ahead citing challenges in growth for its traditional business, while struggling to win large deals in its newer offerings in artificial intelligence and cloud.

TCS shareholders approve Rs 16,000-crore share buyback

Buyback programme saw 99.81% of the total number of valid votes being cast in favour of the proposal

Tata Consultancy Services, India’s largest software exporter on Monday said its shareholders have approved Rs 16,000 crore share buyback plan, as investors look to boost returns in the wake of slowing growth of the IT services sector.The buyback programme, which was passed through a special resolution, saw 99.81% of the total number of valid votes being cast in favour of the proposal, the company said in a regulatory filing.The proposed shares under the buyback represent 2.85% of the total paid up equity share capital at Rs 2,850 per equity share. In February, the board of TCS had approved the proposal to buy back up to 5.61 crore equity shares for an aggregate amount not exceeding Rs 16,000 crore.India’s IT services firms are looking at returning cash to investors as they struggle to grow business in an uncertain environment. As traditional IT services business slow and automation takes over, clients are increasingly spending on digital and cloud projects, where business cycles are . Tata Consultancy Services, India’s largest software exporter on Monday said its shareholders have approved Rs 16,000 crore plan, as investors look to boost returns in the wake of slowing growth of the IT services sector.

The buyback programme, which was passed through a special resolution, saw 99.81% of the total number of valid votes being cast in favour of the proposal, the company said in a regulatory filing.

The proposed shares under the buyback represent 2.85% of the total paid up equity share capital at Rs 2,850 per equity share. In February, the board of had approved the proposal to buy back up to 5.61 crore equity shares for an aggregate amount not exceeding Rs 16,000 crore.

India’s IT services firms are looking at returning cash to investors as they struggle to grow business in an uncertain environment. As traditional IT services business slow and automation takes over, clients are increasingly spending on digital and cloud projects, where business cycles are shorter and requires firms to deploy resources at client locations instead of offshore sites in India.

In February, prodded by activist investor Elliott Management, Cognizant Technology Solutions, which follows the offshore model like Indian IT services firms, announced that it would return as much as $ 3.4 billion to shareholders, which includes dividends and

This was followed by TCS’s Rs 13,000 crore buyback. In March, HCL Technologies said it would buyback Rs 3,500 crore of shares. Last week, Infosys, which is under scrutiny by its founder N R Narayana Murthy over governance lapses, said it would return as much as $ 2 billion to shareholders over the next 12 months.

The approval comes ahead of fourth quarter results on Tuesday.

stock closed Rs 7 or 0.30 per cent down at Rs 2320.85 on the Bombay Stock Exchange on Monday. Last week, Infosys forecast lower growth for the year ahead citing challenges in growth for its traditional business, while struggling to win large deals in its newer offerings in artificial intelligence and cloud.

image

Ayan Pramanik

Business Standard

http://bsmedia.business-standard.com/_media/bs/wap/images/bs_logo_amp.png 177 22

LEAVE A REPLY

Please enter your comment!
Please enter your name here