Tata Consultancy Services Limited (TCS) BuyBack June 2018
(i) Tata Consultancy Services Limited (TCS) Board of Directors of the Company at its meeting held on 15 June 2018 has approved a proposal to buy back up to 7,61,90,476 Equity Shares (Seven crores sixty one lakh ninety thousand four hundred and seventy six only) of the Company for an aggregate amount not exceeding 16,000 crore (Rupees sixteen thousand crore only) (hereinafter referred to as the “Buyback Size”) being 1.99% of the total paid up equity share capital, at Rs.2100 (Rupees two thousand one hundred only) per Equity Share (hereinafter referred to as the “Buyback Price”).
(ii) Tata Consultancy Services Limited (TCS) is engaged in providing information technology (IT) services, digital and business solutions. The Company’s segments include banking, finance and insurance services (BFSI); manufacturing; retail and consumer packaged goods (CPG); telecom, media and entertainment, and others, such as energy, resources and utilities, hi-tech, life science and healthcare, s-Governance, travel, transportation and hospitality, and other products. Its services portfolio consists of IT and assurance services, business intelligence and performance management, business process services, cloud services, connected marketing solutions, consulting, engineering and industrial services, enterprise solutions, IT infrastructure services, mobility products and services and platform solutions. Its software offerings include Digital Software and Solutions, TCS BaNCS and TCS MasterCraft, among others. It serves industries, including insurance, healthcare, retail, telecom and others.
Buy Back Offer Deal:
| Buyback Type: | Tender Offer |
| Buyback Record Date: | Aug 18 2018 |
| Buyback Opening Date: | Sep 06 2018 |
| Buyback Closing Date: | Sep 21 2018 |
| Buyback Offer Amount: | ₹ 16,000 Cr |
| Date of Board Meeting approving the proposal: | Jun 12 2018 |
| Date of Public Announcement: | Jun 12 2018 |
| Buyback Offer Size: | 1.99% |
| Buyback Number of Shares: | 76,190,476 |
| FV: | 1 |
| Buyback Price: | ₹ 2100 Per Equity Share |
Details of Buyback:
How to Participate in buyback?
Profit from the buyback on the bases of acceptance Ratio:
| Acceptance Ratio | 33% | 50% | 75% | 100% |
| Amount Invested in Buyback | 175750 | 175750 | 175750 | 175750 |
| No. of Shares buyback | 32 | 48 | 72 | 95 |
| BuyBack Profit | 8000 | 12000 | 18000 | 23750 |
| Profit | 5% | 7% | 10% | 14% |
Recommendation:
Company Contact Details:
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Final Analysis of TCS Technologies 2018 ( Return Analysis)
1. Buyback Announcement date: 12.06.2018—– Share Price was 1850.
2. 95 Shares bought at Rs. 1850 means an investment of 1,75,750.
3. Retail Acceptance Ratio was 100%. i.e. out of 95 shares, 95 shares have been buyback by the company. Profit on Accepted Shares–23750
4. The final Accepted Shares were taken back on 03.10.2018.
5. Overall we can say a profit of 23750 on an investment of 1,75,750 in 3 months which is equivalent to a 54% Annualized return.
T D POWER SYSTEMS
Buyback upto 30cr at Rs 256/sh (80% prem)
At 256/sh: Can buy 11.7lkh shrs
If they buy for eg at an avg of 200/sh; they can buy 15lkh shrs
Hence atleast 3.5% to 4.5% shares extinguished
GOING BY ANNEXURE-A
Promoters won’t participate
Finally +Ve intent!! (Twitter)
TCS Final Acceptance Ratio
Category———-No. of Shares Tendered ——–No. of Shares Accepted———%
(i) General——— ——–6,47,61,904———————–10,77,67,024————-166.4%
(ii) Retail ——————1,14,28,572———————40,16,984——————-35.15%
Sir,
Please help me
Finally has the retail acceptance ratio come to 100% or 35%
please explain
thanks
100%.
In retail category, tcs has accepted 100% shares ( and for this are we not sad, because the mkt price is abt 100 rs above buyback ,😍☹️
Dear Customer TCS 20 shares are allotted successfully against your order in BSE, under the Buy Back Settlement 2018088.
What does that mean.?
That means your 20 shares has been accepted under buyback at price of Rs 2100/-
You must have received credit for sold shares today. If not, you will get it very soon.
Hi,
I was having 300 shares for tcs and received an.buyback offer to tender 5 shares only in buyback option , but I by mistake had participated for entire 300 shares.Today share is running at price near 2200/-.
Query: Can I cancel this now if no Can TCS buy all my shares in buy back.Pls revert.if sny one can.help.
Under retail category it seems 100 vs 38 shares acceptance ratio.
I offered 100 shares and 38 has been accepted.
If you have opted for 300 shares then your 114 shares will be accepted under buyback offer and remaining will remain with you !!
Settlement date is tomorrow.
I do not think so. It seems 100 shares exceeded retail category. In retail acceptance is 100 percent. But you are lucky. Rate now is above buyback so you can sell balance in open market
I do not think so
Thanks thats true this is exactly has happend to me today.
*TCS Buyback* settlement will be done on 25th September which was earlier scheduled on 3rd October
Got above forwarded message..
Any one have information is it correct or not ?
Yes, this information is correct. Here is the notice from BSE.
https://www.bseindia.com/markets/MarketInfo/DispNewNoticesCirculars.aspx?page=20180921-6
Yes 25th settlement date is correct.
I offered 100 shares against which i have been allotted 38 shares under buyback offer today.
TCS BUYBACK UPDATE
Bse apps 45781
Nse apps 2897
Total shares tendered 97718228
Oversubscribed successfully
Total Retails apps near 32500
Tomorrow holiday
1 day to go
Could you please share the link from where we can check the live bidding information?
I would like to track it for JBChem buyback.
Thanks.
Please check our post at https://investorzone.in/buyback/j-b-chemicals-pharmaceuticals-limited-buyback-2018/.
Thank you …
TCS buyback update
Total apps bse and nse near 28000
Retail apps near 18500 considering 95 shares
Total shares tendered near 2.8 crore shares
Retail 100% acceptance expected
2 days to go due to
Thursday is holiday
Fii tendered 2.54 crore shares on bse
TCS buyback
BSE
17321 Apps
2.16 crore shares
Tendered
NSE 354 Apps
28051 shares
I am eligible to tender 40 shares in tcs buyback but i have sold my shares in open market. can i now purchase shares from open market and tender them in buyback
Sir, Record date is over . Those who have shares before 18.08.2018( Record date) can tender their share.
If you have received tender form then yes, you can buy from the market and tender them in buyback.
is this possible?
Yes, it is possible. If shares sold after buyback record date then you are eligible for buyback. you have to buy it in the same demat account and should not offer more than shares available on record date.
Thanks for the clarification.
From BSE Website, there are 12 Cr Shares with Retail category (i.e having less than shares of Rs 2 L). Now 1.6 Cr shares are to be bought back from retailers, means entitlement ration should be 9%. However actual entitlement ratio for retail category is 44%. Can somebody explain how this variation came ?? I am unable to find details anywhere.
Read the line carefully:
“Individuals share capital upto Rs. 2 Lacs” and “No. of Shareholder= 69,54,10″ and ” No. of Shares= 12.16 Cr”
Share Capital = No. of Shares* Face value= 2lacs*1= 2lacs
Conclusion– So there are 695410 Individuals who are holding shares between (0-2 lacs) and total shares holding are 12.16 Cr.
For buyback Retail are the person who holds between 0-95 Shares Which was roughly around 3.12 Cr.
Hope your point is clear now.
Sir, from where did you get the figure of 3.12 Cr ? Annual report showing shareholding pattern of 12 Cr only for individuals having less that Rs 2L shares. I am trying to identify this gap only.
(i) The total number of Individuals Shareholders as of March 2018 was 5,46,716. As per the buyback price of 2100 at the time of buyback announcement, the investor having shares between 0-95 were classified as Retail Investor. The number of such shareholders was roughly around 1.64 Cr[ See Annual Report of no. of shareholders between 1-100] as of March 2018.
(ii) The total number of Individuals as of June 2018 was 6,95,410 an increase of 1,48,694 new individuals as compared to March 2018. Assuming these newly added investors have bought shares between 1-100 for the purpose of the buyback.
(iii) So we can conclude that the total number of individuals investor having shares in the range of 1-100 is around 1.64+1.48=3.12 Cr.
Sir, thank you for taking the pain. I have more data here.
As per BSE filing (June 2018), shareholding pattern is like below:
Individual share capital upto Rs. 2 Lacs: Shareholders: 695410, No of Shares held: 121693343
As per buyback letter of offer 2018: (https://www.tcs.com/content/dam/tcs/pdf/discover-tcs/investor-relations/corporate-actions/2017-18/tcs-buyback-letter-of-offer-2018.pdf)
Based on the aforementioned definition, there are 5,92,509 Small Shareholders of the Company with an aggregate shareholding of 2,55,11,425 Equity Shares as on the Record Date, which constitutes 0.67% of the total paid-up equity share capital of the Company and 33.48% of the maximum number of Equity Shares which are proposed to be bought back as part of this Buyback.
Now, I am confused as when BSE filing showed 12 Cr shares held under Individual share capital upto Rs. 2 Lacs in June, how this number came down to 2.55 Cr in July ?
Does the BSE filing category “Individual share capital upto Rs. 2 Lacs” is not the actual retail category??
Yes!! Now you got the point. The individual does not mean Retail.
Individual means anybody who is holding shares between 1-200000.( It can be You, me, Ramdeo Aggarwal, Jhunjhunwala etc).
and Retail definition of the buyback is, as on record date the total value of share you hold should not be more than 2 lacs( No. of Shares* market Price( on record date). In case of TCS for safety measure, we considered Retail investors who were holding shares between 0-95 because even if the price goes above 2100( the buyback price) you will be still be considered under retail category.
Your answer raises my curiosity even more. Sorry for novice kind of query.
Till now, I used to understand that anyone holding shares worth below 2L will be considered as small/retail investor. Now, you say that if Jhunjhunwala having script worth less than 2L will not be considered small/retail. How is this ? Is there something hidden in Retail definition? And in case of TCS, there are 3/4th people having shares less than worth Rs 2L and still they are not retail investors?
Your answer will be interesting and I would love to hear. Thanks a lot.
Let me go through the basics:
1. Definition of Retail Investor in case of buyback- Any Shareholder having shares worth less than 2 lakhs( No. of Shares* Market of Value of Share) as on a Record date will be considered Retail Investors.
2. What you are referring to a Shareholding pattern is different. In the shareholding pattern, it is showing how many shareholders are there who have shares between 0-2 lakh( 2 lakh here means no. of Shares* FV).
Now Imagine, XYZ shareholder having 40000 no. of Shares of TCS as on record date would not be considered a retail investor because his net worth is ( 40000*2000(considering share price on record date) above 2 lakhs. However, you will find this person name in the shareholding pattern showing individuals holding number shares up to 2 lakhs.
Think Over It!!!!
Well, BSE shareholding clearly says “Individual Share Capital upto Rs 2 Lacs”. Then where is the confusion.
Are they reporting something wrong data then we need to find way to get it corrected.
TCS now traded @ 2100
Those who bought for only buyback purpose, can book profits as buyback rate is 2100
TCS Today crossed 2100 wow!!! The Share currently trading above buyback price. It means literally TCS buyback is over.
Tcs Entitlement
Retail – *43 shares for every 96 shares held*
Non-retail – 4 shares for every 235 shares held on record date
And just for info, the actual acceptance will be 100% in retail category, based on past experience, and the current Mkt price being nearly same as buybak price, and many would have exited.
TCS buyback
Tender open – 6 sept
Tender close – 21 sept
Settlement – 3rd October
*TCS likely buyback schedule*
Buyback open – 28 Aug
Buyback close – 10 sept
Settlement date – 19 sept
As defined under Regulation 2(1)(la) of the Buyback Regulations, a “Small Shareholder” is a Shareholder who holds Equity Shares having market value, on the basis of closing price on NSE as on Record Date, of not more than Rs. 2,00,000/- (Rupees Two Lakh only). As on the *Record Date*, the closing price on NSE, having the highest trading volume per Equity Share, accordingly all Shareholders holding Rs.200000/- divided by price of 18th Aug 2018 i.e. as on the Record Date are classified as ‘Small Shareholders’ for the purpose of the Buyback Offer.
For TCS buyback, all shares that are alloted as bonus in June 2018 should not be submitted as that would imply a gain of 2100/- rs and attract a tax of 315/-
So please be careful.
agree rs. 315 tax
but on original shares loss will arise
suppose rs.2800 buy
2100 buy back acceptance
so rs. 700 loss arrived.
No.
(i) Suppose you have 40 shares at 2800.
(ii) After bonus, you got 80 Shares @ 1400.
(iii) If you participate in the tender process the following scenario would be there.
a) Tendered Shares=40, then no issue of tax.
b) Tendered Shares=60, accepted <40, then also no issue of tax.
c) Tendered Shares=80, accepted 60, then on 20 shares, you will have to pay tax (315*20= 6300).
d) Tendered Shares=80, accepted 80, then on 40 shares, you will have to pay tax(315*40=12,600).
Hope it is clear. If any doubt please drop a message here..
I have buy tcs on 9th August , total 95 should I have to pay tax? If yes than is there any other idea to avoid ths tax
I have bought 95 shares how shall I avoid this tax? Kindly advise.
You can’t avoid tax dipen bhai. You have to pay tax at the rate of 15%*(selling price-cost price).
I am talking about 315rs tax is this compulsory?
12.16 crores shares hold by TCS retail shareholders as on 30th june 2018
1.14 Crores shares reserved for TCS retail shareholders
assuming 50% shares will tender in buy back
so acceptance ratio 20% around
Please correct me, if i am wrong. Thanks
People looking at 120/130 ₹ difference now and buying TCS.but Acceptance Ratio is decreasing daily.
Regarding *TCS BUY BACK* offer :- 🤔🤔🤔
Retail share holding 5,46,716 (31/03/2018).
Current share holding 6,95,410 (30/06/2018).
*Increase Share Holders 1,48,694 ( @ 27% new retailers).*
Now I am assuming buy back ratio @ 52% to 55% share.
18th August record date in TCS for buy back eligibility
15 august market closed and 17 august bank closed and 18 august saturday. one has to buy max on monday 13 august to be eligible for buyback.
(i) The total number of Retail Shareholders as of March 2018 was 5,46,716. As per current market price at the time of buyback announcement, the investor having shares between 1-100 was classified as Retail Investor(holding value <2 Lacs). The number of such shareholders was around 1.64 Cr.
(ii) The total number of Retail Shareholders as of June 2018 was 6,95,410. That means 1,48,694 new retailers were added in the last three months who bought shares between 1-100.
(iii) So we can conclude that the total number of retail investor having shares in the range of 1-100 is around 1.64+1.48=3.12 Cr.
(iv) The TCS has reserved 1.1428 Cr shares for Retail Investors.
(v) So assuming 75% of 3.12 Cr shareholders participate in the Tender process, then Acceptance ratio would be 1.1428/2.34=48%.
12.16 crores shares hold by TCS retail shareholders as on 30th june 2018
not 3.12 Crores shares
on 6th august result for ballot paper will be out and with that record date will be given
4th august was last date to participate in postal ballot and it was Saturday so obviously it was expected that the result will be announced on Monday but TCS did something more than ordinary by announcing result same day and also a record date.
Record date for eligiblity
It is not yet announced. It is likely to announce in the first week of August.
It looks a good buyback from TCS. Every retail investor should apply in this. The strategy should be to accumulate TCS on every fall and do averaging of shares since it will take 2 months time for buyback to happen. So don’t be in hurry to buy TCS let it cool down a little bit and then jump.
dinesh bhai thanks for such a great information, now as the buyback amount is again same as last year 16000cr, what are your views and from where do you have collected such a superb information
TCS buyback loss for bonus shares :-
Investor holding only 100 bonus shares submitt shares for buyback
As bonus shares alloted are just 3 months old and had zero value in terms of inccome tax and on receiving buyback amount at Rs.2100 investor has to pay Rs.315 as short term capital gain tax which is expected to be more then profit realised on diffetence of stock price of record date and buyback price.
Good view on bonus share which will be offered in buyback .
agree rs. 315 tax
but on original shares loss will arise
suppose rs.2800 buy
2100 buy back acceptance
so rs. 700 loss arrived.
TCS Buyback Details 2017
Public Announcement Date 20 February 2017
Record Date 08 May 2017
Buyback Opening Date 18 May 2017
Buyback Closing Date 31 May 2017
Buyback Price 2850
Acceptance Ratio for Retail 100%
Buyback Amount 16000 Cr
Based on the above report, we are expecting 100% acceptance in TCS buyback with a profit of ₹26,000 for every application of ₹2Lac which comes to around 13% in 3 months (Annualised Return of 52%). This return is far more superior than any fixed deposit and everyone should apply in this buyback
*TCS Buyback Analysis*
*_Last Year Buyback Details_*
Total Buyback Size – 16,000 Cr
Amount Reserved for Retail Category – 2400 Cr
No. of shares reserved for Retail Category – 84,21,052
No. of shares validly tendered – 41,97,408
Number of Valid Bids – 1,00,266
Average Number of shares per bid – 41.86
Average value of shares per bid – 1,19,300 (41.86*2850)
*_Current Year Buyback Expectation_(Actual Announcement on 15th June)*
Expected Buyback Size – 10,000 Cr
Amount Reserved for Retail Category – 1500 Cr
Expected Number of Valid Bids – 1,50,000 (Assuming 50% growth from last year considering more participation due to buyback awareness and increase in number of demat accounts)
Average value of shares per bid – 1,25,000 (Assumed)
Expected Value of bids received in retail category – 1875 Cr (1.5L * 1.25L)
*Expected Acceptance Ratio = 1500/1875*100 => 80%*
Expected Buyback Price – 2100 (Assuming 15% gap between CMP(1825) and buyback price)
*Expected Profit per maximum application – ₹22,000*
(100 shares *(2100-1825)*80%)
Balance 20% shares can be held for long term.
Considering last year data, there will be 2 – 2.5 months gap between the buyback announcement date and record date. So, Keep funds ready for TCS buyback and buy gradually before record date on corrections.