IT giant Tata Consultancy Services on Friday became the first Indian company to close above the Rs 7 lakh crore mark in terms of market capitalisation. The shares of the company ended at a fresh lifetime high of Rs 1,841.50 after its board approved a share buyback of up to Rs 16,000 crore.
On the BSE, 7.66 lakh shares of the company were traded and over 91 lakh shares changed hands at the NSE during the day. On May 25, 2018, TCS market valuation had briefly crossed the Rs 7-lakh crore mark during the session.
TCS board on Friday approved to buy back 7,61,90,476 equity shares of Re 1 face value at Rs 2,100 per share for about Rs 16,000 crore.
"The buyback size is 1.99 per cent of the total paid-up equity share capital," the city-based firm said in a regulatory filing on the BSE.
This is the second time the global software major is resorting to buy back its shares after it bought 5.61 crore shares in April 2017 for Rs 16,000 crore at Rs 2,850 per share.
"The buyback will be on a proportionate basis under the tender offer route in accordance with the provisions of the SEBI regulations and the Companies Act, 2013," said the filing.
"A public announcement on the process, timelines and other details will be made in due course in accordance with the buyback regulations," added the filing.
Shares of the company advanced 2.75 per cent on the day while Sensex closed 0.06 per cent higher at 35,622.