At its board meeting on October 11, TCS will consider a share buyback. Details are available here
When the board of the IT behemoth Tata Consultancy Services (TCS) meets the next week to ratify its second-quarter financial results, which will be held on October 11, the business indicated on Friday that it would take a share buyback into consideration.
According to the company’s regulatory filing, “this is to inform you that the Board of Directors will consider a proposal for the buyback of equity shares of the Company, at its meeting to be held on October 11, 2023,” which is in accordance with Regulation 29(1)(b) of the Sebi (Listing Obligations and Disclosure Requirements) Regulations, 2015.
The IT giant did not, however, specify the amount of the repurchase it was contemplating. It most recently repurchased shares for Rs 16,000 crore. The news came as IT firms battled to sustain steady revenue growth.
“We continue to be pessimistic about the industry since our most recent assessments haven’t shown any appreciable improvement in demand. In a report published on Wednesday, analysts Ankur Rudra and Bhavik Mehta stated, “We believe the overall setting is less favorable than last quarter.
Analysts went on to say that “Investors have assumed financial year 24 is a washout and have shifted focus to financial year 25, hoping for a rebound.”
On Friday, the share price of TCS finished 0.89% higher at Rs 3,621.25. The share price at opening was Rs 3,596.80.
