TCS Share Buyback: With the quarterly results of the country’s largest IT company Tata Consultancy Services (TCS), buyback of shares and dividend have also been announced.
TCS Share Buyback: With the quarterly results of the country’s largest IT company Tata Consultancy Services (TCS), buyback of shares and dividend have also been announced. The company had informed with the results on Wednesday that the board has approved share buyback up to Rs 18,000 crore at a price of Rs 4,500. At the same time, an interim dividend of Rs 7 per equity share has also been announced. Brokerage firm ICICI Securities has given special advice to investors to get maximum benefit from TCS’s buyback program.
This is how you can take maximum advantage of TCS Share Buyback
According to the brokerage firm, investing in TCS for the long term may prove to be a better decision as the country’s largest tech stock has given great returns to investors over several decades. According to ICICI Securities, to take advantage of the share buyback program of TCS, take delivery of its shares before the buyback date so that it can be redeemed. Brokerage firms provide margin trading facility for this, under which shares are tendered.
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For this facility, brokerage firms also charge some charges, which can be compensated by dividend. Shares can be easily tendered under the buyback program. For this, go to your broker’s site and look for the buyback option and then enter the number of shares you want to tender.
TCS Q3 Result: 12% increase in profit of country’s largest IT company, announcement of interim dividend of Rs 7
Buyback for the fourth time in five years
TCS has announced buyback for the fourth time in five years since 2017 and this year in 2022 it is the first buyback announcement by an IT company. On the day of buyback, the shares of TCS are booming compared to the day of announcement and in the year 2018, its prices had strengthened by 19 percent. Companies which have more cash surplus decide to buy back shares. Under share buyback, the company buys back its shares present in the market, which reduces the number of shares of the company in the open market. The company does buyback because the decrease in the number of shares in the open market increases the share price available in the market and as a result the value of the shareholders also increases. This also increases the returns.
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