TCS shareholders approve Rs 16,000-crore share buyback ahead of Q4 report

 BT Online   New Delhi     Last Updated: April 18, 2017  | 10:33 IST
TCS shareholders approve Rs 16,000-crore share buyback ahead of Q4 report

Tata Consultancy Services, India's largest software exporter, on Monday said its shareholders have approved a Rs 16,000 crore share buyback plan.

The board of directors passed the buyback programme through a special resolution saw 99.81 per cent 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 per cent of the total paid up equity share capital at Rs 2,850 per equity share.

India's IT companies are looking at returning cash to their investors amid uncertainity which is hindering their growth prospects.

Traditional IT businesess are slowing down because of AI, automation and policy changes while clients are even looking at spending heavily on digital and cloud projects.

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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.

The buyback is proposed to be made from the shareholders of the company on a proportionate basis under the tender offer route using the stock exchange mechanism, TCS had said earlier.

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