TCS Buyback 2023: What It Is, Expected Price And Taxability: Know A-Z About It

New Delhi: Today, Indian IT giant Tata Consultancy Services (TCS) will announce its financial results for the September quarter. In addition to the results, the market would be keenly expecting the board meeting's decision, which is likely to include a share repurchase.

The IT behemoth has previously stated that during its board meeting on October 11th, the board of directors would review and authorize share buyback. (Also Read: Who Is Diya Mehta Jatia? The Stylish Fashion Sensation, Daughter Of Biz Tycoon, Has A Special Connection With Mukesh Ambani's Family)

TCS Buyback: Price Expectations

The market anticipates that TCS's repurchase will cost between Rs 4,300 and Rs 4,500 per share and will total close to Rs 18,000 crore. This will mark the fifth share repurchase announcement made by a Tata Group entity in the previous six years.

TCS Buyback: Previous Buyback

Prior to this, TCS repurchased its stock in the years 2017, 2018, 2020, and 2022. The IT giant, with a market cap of over Rs 13 lakh crore, has acquired back shares worth Rs 66,000 crore over the past six years.

What Is Share Buyback?

During a share buyback, a firm buys back shares from its shareholders, typically at a higher price than the market rate, providing investors the chance to wholly or partially sell their shares at a profit. A repurchase expresses management's belief in the company's operations.

TCS Buyback 2023: Tax Implications

One of the most tax-effective ways to reward shareholders is through a repurchase since, unlike when shares are sold on the open market, gains from tendering shares during a buyback are tax-free.

This is why promoter organizations also take part heavily in buybacks. Conversely, investors who get dividends are subject to the applicable slab rate of taxation, which for high incomes can reach a maximum of 37 percent.