Tata Consultancy Services (TCS) share hit a fresh all-time high today after the firm said its board would consider a share buyback in meeting to be held on October 7. Share of TCS gained 5.70% to Rs 2,666 against previous close of Rs 2,522 on BSE. The IT stock has gained 12.8% in the last six days. The stock opened with a gain of 3.46% at Rs 2,610 on BSE.
TCS share trades higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. Market cap of the firm rose at Rs 9.96 lakh crore on BSE. TCS share has gained 28.12% in one year and 23.22% since the beginning of this year. In one month, the share has risen 16.31%.
Total 1.64 lakh shares of TCS changed hands amounting to turnover of Rs 43.24 crore on BSE. The stock hit 52-week low of Rs 1,504 on March 13 this year. TCS will consider a buyback of shares on October 7, when the company board meets for the second quarter results, India's largest IT services company said on Sunday.
The firm is the first technology company to announce buyback of its shares in the current fiscal. TCS had cash reserves of Rs 73,993 crore in March 2020.
The company also said in another filing that it would provide ?1,218 crore as an exceptional item in the upcoming earnings in relation to the EPIC Systems Corporation case TCS. The case relates to allegations of intellectual property theft against TCS is ongoing. However, TCS has made the provision following a warning by SEBI earlier this year.
"The provision in the books for legal claim is being made as a matter of prudence," the company said in its filing.