The board of India's IT major Tata Consultancy Services on Friday approved a Rs 16,000 crore share buyback plan, in an attempt to distribute available cash among its shareholders. The company will buy back some 7.6 crore shares under the scheme at a price of Rs 2,100 per share. More here
Any suggestions, is it good time to buy or wait for record date? Also, for retail is the limit of 2 lakhs will apply here, as it was in the case of Infosys buyback.
Can anybody opine about the prospect of 100% of retail holding for buyback this time. I understand in previous buyback of TCS, all retail holders who applied, were eligible for 100% buyback-although number of optees were about 50%.
Reference: SP-TATA Sons Exit / Buyback (TCS Q2-FY2021)
When the SP group decided to exit from TATA Sons - analysts commented the event to be negative for TCS, TCS being the cash cow here.
But TCS shares has been rising since. Specially this TCS buyback (along with results) seems to be pushing the share price even higher. And this kind of makes sense as TATA Sons is getting the cash it needs right now and will benefit in the longer team anyway from a stronger TCS , being the largest stakeholder.
Can Alchemist or anyone please help me with below
1. Were the analysts wrong in initially commenting that SP exit would be negative for TCS, or TATA Sons found a smarter way? I am failing to understand.
2. This Rs. 3000 buyback will push the price higher towards 3000 in coming weeks? Obviously not, else everyone would be buying now. Why not?
I got some OPT-TCS-29-Oct-2020-2600-PE yesterday, and thinking to hold them at least another week.