Tata Consultancy Services (TCS) became the first company to close the trading session with a market valuation of over Rs 7 lakh crore on a day. The IT major achieved this milestone shortly after its board approved a share buyback of up to Rs 16,000 crore on Friday. TCS shares soared 2.75 per cent to close at Rs 1,841.45 on BSE. During the day, it surged 3.16 per cent to reach the day's high of Rs 1,849. The scrip closed at Rs 1,840 at NSE, after a rise of 2.93 per cent. Led by the gain in the stock, the company's market valuation soared Rs 18,836.98 crore to Rs 7,05,012.98 crore ($103 billion) at close of trade.
In terms of equity volume, 7.66 lakh shares of TCS changed hands on BSE during the day's trade, whereas more than 91 lakh TCS shares were traded at NSE today. Last month on May 25, TCS's market valuation had crossed the Rs 7-lakh crore mark but came down steadily during the day's trade. The company saw its market valuation cross the Rs 6-lakh crore mark earlier this year, making it the second company to achieve the milestone after Reliance Industries. The Mumbai-headquartered TCS had in April became the first Indian company to close the trading session with over $100 billion market valuation.
The Board of Directors of Tata Consultancy Services (TCS) approved the proposal for buyback of equity shares of the company on Friday. This share buyback scheme will see 7,61,90,476 equity shares of TCS being bought back by the company for Rs 16,000 crores at Rs 2,100 per equity share. TCS has proposed to buy back its equity shares under the tender offer route.
"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 in accordance with the provisions contained in the SEBI (Buy Back of Securities) Regulations, 1998 (hereinafter referred to as the "Buyback Regulations") and the Companies Act, 2013 and rules made thereunder," TCS said in a regulatory filing following the Board meeting.
After reaching this milestone, TCS has becom the s most valued firm in India, followed by Reliance Industries Ltd with a m-cap of Rs 6,42,363.07 crore. HDFC Bank (Rs 5,28,652.06 crore), Hindustan Unilever (Rs 3,50,929 crore) and ITC (Rs 3,22,803.60 crore) make up the rest of the top-five list.
(With PTI inputs)