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TCS Shares Soar To Record High After Mega Buyback Announcement

Updated: October 08, 2020 | 9:56 am IST

TCS or Tata Consultancy Services shares soared quite 5 percent to scale a fresh high on Thursday, each day after the IT bellwether announced a purchase worth up to Rs 16,000 crore but missed analysts’ estimates for its net income within the July-September period. TCS shares jumped by ₹ 137.60 – or 5.03 percent – to a record ₹ 2,875 apiece on the BSE in morning deals. At 9:50 am, TCS shares traded 4.44 percent higher at ₹ 2,858.95 on the bourse, outperforming the benchmark Sensex index which was up 1.22 percent. (Track TCS Stock Price)
In a regulatory filing after market hours on Wednesday, TCS – the country’s second most precious company – said it’ll repurchase up to five .33 crore shares at ₹ 3,000 apiece, marking a 9.7 percent premium to their price on Wednesday.

Analysts say the timing of the share buyback has been partly triggered by the continued feud between Tata and Shapoorji Pallonji groups.

The Shapoorji Pallonji group, which has an 18 percent stake in Tata Sons – the company of Tata group, recently said: “a separation from the Tata Group is necessary”.

TCS said its consolidated net income was at ₹ 7,475 crores within the July-September period, up 6.66 percent compared to the previous quarter. Its net income missed analysts’ estimates.

The IT major named Samir Seksaria as chief treasurer, to exchange V Ramakrishnan, who will retire in April next year.

At the very best intraday level on Thursday, Tata Consultancy Services’ market capitalization – or market price – touched Rs 10.79 lakh crore.

On Monday, the company’s market price had touched the Rs 10 lakh crore mark for the primary time, after it mentioned its board would consider a buyback plan. That made TCS the sole domestic firm after Reliance Industries to cross the milestone.

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