TCS, a multinational Indian IT company, was the largest IT company in India with revenue of Rs. 972.61billion in FY17 (Refer to Exhibit II). The company was part of the TATA Group, one of the most reputed and well-diversified business groups in India. TCS provided a wide range of services such as outsourcing, consultancy,Quality Engineering.

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SHARE BUYBACK OF TCS

On February 15, 2017, as per section 29 (1)(b) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, under the signature of Suprakash Mukhopadhyay, Senior Vice President and Company Secretary of TCS, the stock exchanges (Bombay Stock Exchange (BSE) and National Stock Exchange (NSE)) were informed about the upcoming Board of Directors (BoDs) meeting on February 20, 2017, to consider the proposal of equity share buyback. ..

ANALYSTS VIEWS OF SHARE BUYBACK

Industry experts stated that companies in the IT industry were correct in going in for buybacks as growth had slowed due to the harsh business environment for Indian companies after the change in leadership in the US. Additionally, the IT industry was less capital incentive and IT companies were mostly cash rich. Some experts saw the TCS buyback as being in line with the strategy followed by its global competitors such as Accenture and Cognizant who had stepped up their payout polices..

TENDER OR SELL

The shareholders of TCS needed to decide whether to encash their investment at that point of time or not. If they chose to liquidate their stocks then, they had to decide whether to tender their shares in the tender offer or sell their shares in the open market...

EXHIBITS

Exhibit I: Buyback Issues in India from FY1998-99 to FY2017-18.
Exhibit II : Selected Financial Information of TCS (Standalone Basis) (in Rs. billion)
Exhibit III : Pre-Buyback Shareholding Pattern of TCS as on February 17, 2017
Exhibit IV :Statement of Permissible Capital (including premium) as at December 31, 2016
Exhibit V : Monthly Share Price Movements of TCS at NSE from April 2014 to April 2017
Exhibit VI : Regulatory Framework of Buyback of Securities in India.
Exhibit VII : Intention of the Promoters to participate in the Buyback
Exhibit VIII : Postal Ballot Form Related to TCS Buyback Offer
Exhibit XI : Result of Postal Ballot for TCS Buyback