TCS Buyback 2022

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: Feb 23 2022
Buyback Opening Date: Mar 09 2022
Buyback Closing Date: Mar 23 2022
Buyback Offer Amount: ₹ 18,000 cr
Date of Board Meeting approving the proposal: Jan 12 2022
Date of Public Announcement: Jan 12 2022
Buyback Number of Shares: 4,00,00,000
Price Type: Tender offer
FV: 1
Buyback Price: ₹ 4500 Per Equity Share

Details of Buyback:

Further to our intimation dated January 7, 2022 and in terms of Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform you that the Board of Directors of the Company at its meeting held today has approved a proposal to buyback up to 4,00,00,000 (Four crore) Equity Shares of the Company for an aggregate amount not exceeding ₹18,000 crore (Rupees eighteen thousand crore only) (hereinafter referred to as the "Buyback Size") being 1.08% of the total paid-up equity share capital, at ₹4,500 (Rupees four thousand five hundred only) per Equity Share (hereinafter referred to as the "Buyback Price").

Salient financial parameters:

 
Particulars (in Cr) Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
Sales 117,966 123,104 146,463 156,949 164,177
Expenses 85,655 90,588 106,957 114,840 117,631
Operating Profit 32,311 32,516 39,506 42,109 46,546
OPM % 27% 26% 27% 27% 28%
Other Income 4,221 3,642 4,311 4,592 1,916
Interest 32 52 198 924 637
Depreciation 1,987 2,014 2,056 3,529 4,065
Profit before tax 34,513 34,092 41,563 42,248 43,760
Tax % 24% 24% 24% 23% 26%
Net Profit 26,289 25,826 31,472 32,340 32,430
EPS in Rs 66.71 67.46 83.87 86.19 87.67
SMC Global TCS Buyback Report

How to Participate in buyback?

1. Firstly, to be eligible for the buyback the investor should have shares of Tata Consultancy Services Limited (TCS) in demat or physical form as on record date [23.02.2022] 2. Once you have shares in demat, you can participate in the buyback process which is opening from [09.03.2022 to 23.03.2022], by selling your shares through your broker on NSE or BSE. 3. Then on [01.04.2022] the payment will be given to you for accepted shares and unaccepted shares will be returned to your demat account.

Profit from the buyback on the bases of acceptance Ratio:

Buy 44 Shares at CMP of Rs.3857 ( 2,00,000/4500=44)
Acceptance Ratio 33% 50% 75% 100%
Amount Invested in Buyback  1,71,422 1,71,422 1,71,422 1,71,422
No. of Shares buyback 15 22 33 44
BuyBack Profit 9645 14146 21219 28292
Profit 5.6% 8.25% 12.37% 16.5%
 

Recommendation:

Review and Recommendation of Tata Consultancy Services Limited (TCS) Buyback from our IZ team is:7/10 1-5: Fair 5-7: Good 7-10: Excellent. [Expected ER = 20-25%]

329 Comments

    I had applied for 35 shares from total quantity of 225 shares. It was less than Rs.2 lacs even than not a single share was alloted to me. It was applied within time through ICICI direct online.

    Applied for 44 Shares 10 Accepted 34 are back in my account, Amount not yet credited. I have emailed and received a reply stating your email has been acknowledged and the ticket has been created. Please advise.

    If there is one stock whose buyback has not hurt me at all despite its low AR, it is TCS.
    Everytime with 100% buyback in retail category, there were never any shares left for subsequent buyback which normally used to be at almost 50-100% above the previous buyback price

      I have 40 remaining shares @ 3779. What should I do? Sell all and purchase GAIL for buy back or hold till 4000? Pl. guide and advise.

    I have seen buyback amount credited to my account in ICICI in today’s date

      10 shares out of 44 has been accepted, But the amount is yet not credited to my bank account. Can i mail someone or just wait.

    would recommend that those who do not need immediate money. pls hd on to your investment of balance shares. This is the first time that AR has been below 100% ( due to mkt conditions).
    TCS is an excellent stock to keep on a long term basis

    not sure how they worked the AR. in my case 10 out of 45 shares accepted as per broker sms.
    This implies 22% AR
    then how come 13 out of 50 or 53?

      I had tendered 25 but got 5 accepted as per contract note. AR of 20%. Don’t understand. Seems a bit arbitrary at the moment.

      Mine is 12/50. Maybe rounding off to adjust for fractional shares resulted in 10/45.

    I received a message from HDFC Securities that my 5 entitled shares of TCS were sold in the buyback today. HDFC Securities has even debited the brokerage from my savings account today towards the buyback trade. Does that mean that all my 5 shares were accepted in the buyback? When will I receive the funds in my account?

      If your entitlement (in buyback) is 5 shares, then all the 5 would have been accepted for buyback. If you had tendered more than your entitlement, some have been accepted and the balance returned.

        Yes, I was entitled 5 shares for buyback. Today, I have received an email from TCS that all my 5 tendered shares were accepted in the buyback. I have a demat account with HDFC Securities and they have debited a sum of Rs. 160/- towards the brokerage for the buyback trade of these 5 shares. So, my effective buyback price is Rs. 4468/-! I haven’t received the funds from TCS yet. Hope the amount will be credited in my account soon.

    how to chekc how many shares has been accepted? I didn’t get any email or sms? we were told we will know by today

    13 Shares got accepted out of 50 in Retail, Unaccepted Shares will be released on 28 March.

    Those who Participated through 1 Share has been Accepted of All Investors

    Amount for accepted Shares will be received on the same date in Bank

    END OF TCS BUYBACK

      Anyone knows about the AR in general category? Please share. Thank you.

      Ksrk sir GAIL buyback would be tender route or open market ? Plz also advice this for buyback as TCS amount will be released on Monday ??

        Last year it was through the Tender Offer . AR is 100% in Retail Category. I have sold @152.65 in the open market before tendering for the buyback against the buyback price of Rs.150/-.

    *Breaking News – TCS Buyback Settlement Revised* 👍

    *New Date for Intimation of Acceptance Ratio : 25 March (Previous 30 March)*

    *New Settlement Date : 28 March against Earlier Date of 31 March*

    Total Share Tender 301182332 (BSE+NSE)
    Individual tender (11409476+62221854) (NSE+BSE)

    Expected for retail Category = 20%
    General Category = 10 to 12%

    At 3.30pm today
    BSE = 300882475
    NSE = 032960647
    TATAL = 33.04 Crs.
    against 4.00Crs.
    Now no hopes for AR to be more than 20%. But let us hope for the BEST.

        As per an analysis done by Edelweiss Alternative Research, the acceptance ratio for retail investors could be 14.3 per cent. In other words, one share could get accepted in the buyback for every 7 shares tendered. For non-retail investors, only one share could get accepted for every 108 shares tendered.
        Source. : Business standard

          They may be of the opinion that the ER and AR will be the same.

    It Seems that AR for Reserved Category would be around 20% and For General Category it would be around 5 to 10%.

    BSE site shows 193.66 % shares submitted for buy back. Still 4.5 working days are left to closure. My assumption @ 35 to 40 % AR. In no case it may reach to 50%. However, this is my assumption without any consideration. I wish I may be wrong.

      Sir,in my humble opinion it will be between 20 to 25 percent….cant go above 25 percent for sure after seeing today’s data on bse….in extreme case will go below 20 percent….so one in 5 shares will most likely be AR….i dont know what will happen to fractional shares…i think lottery system will be adopted…lets c…

    Apply TCS Buyback is very complex.
    Why filling application for TCS buyback is not simple ?

      It depends upon the broker with whom you have demat account. It has nothing to do with TCS.

    Hello
    I have 40 shares on record date with entitlement for 5 in the tcs buyback. I have 50 hares now
    WHat will happen, if i tender more than 40 shares, lets say 45 shares?
    a) 40 shares application accepted, 5 rejected?
    b) 45 shares rejected?
    c) 45 shares accepted?

        Sir i have 44 shares can i do st bt before 23 march or once i sell i lost chancec for apply

        I placed on multiple accounts and brokers
        all accepted 45 tender
        but once the window closes , i dont know what it means
        5 rejected or 45 rejected .
        (p.s. luckily i did find this error in time and then i did correct the number of shares to 40)

    TCS Buyback Day 1 Summary, Window to close on 23 March

    Retail Reservation : 60,00,000 Shares

    Small Shareholders on Record Date : 21,10,824

    Shares Tendered in Individual Category on Day 1 – 9,10,255 Shares

    Number of Bids Received on Day 1 – 22,496

    I have tcs shares in three DP (408+108+65).I want to know how I can participate in buyback offer.should I have to tender from all three accounts or from one will work.

      Any opinion/idea…..why does it shows Zero for investor with 2L + investment amount

      Entitlement is 1 out of 108. So the entitlement will be 0 upto 107 shares.

      For fractional share, priority will be given for one extra share. Like for retail shareholders those holding one shares as on record date, one share will be accepted

        sir, can you please tell my chances in buyback.I have 4 shares of tcs on record date (buying price 3800 per share)…i have tendered all 4 shares.Can i get atleast 1 share selected for buyback?

      Very bad entitlement.. Last 3 times it was over 40%. This time it is just 14%.

        Please can you tell me how is entitlement ratio calculated? I understand acceptance ratio, but not entitlement ratio.

          It is given in the Letter of offer. Sec 19. Not sure whether it is ok to put that here as it is running to a couple of pages. Some parts –

          there are 21,10,826 Small Shareholders of the Company with an aggregate shareholding of 4,10,51,350

          15% of 4,00,00,000 (Four crore) Equity Shares which is 60,00,000 – reserved for Small Shareholders

          60,00,000 / 4,10,51,350 = 0.14616 or 14.616%

        Last Time Small Sharehloder were apx 1.94 Crore and Now this time small shareholders are 4.16 crore. more than double.

        AR will be apx 40 % if price goes upto 3700 before close of buy back otherwise it may be below 30%.

    I read in another Forum that TCS Buy back will open from 11.03. Is there any authentic information?

    Hello Sirs,

    Could someone please advise regarding the escorts open offer?

      Yes…if someone can throw some light on – how to come eligible and how to apply, timeframe to get the money back, etc

      You get back the money in escorts open offer by 11 april. Acceptance should be 60% plus @2000 if markets donot enter a panic mode. April futures of escorts are quoting at 1442 at this moment

    I read somewhere that UPL Meeting on 2nd March. This may be verified pl.

        Sir, any reason for UPL to be going through Open Market?
        Promoters would not be able to sell and gain anything…

          As per Previous record, In 2014 UPL buyback 1.40 Cr share through Open Market. Promotors are increasing their sharholding, As per Shareholding Pattern in sep 21 it was 27.96 and in Dec21 it is increased to 28.24. and also UPL is Rs 200 down from its 52 week high.

          reason is market based mechanism is more efficient as company is able to get its equity reduced with less spending. Also when ruling price is lower than what promoters consider OK, it is a way of providing support to price by daily buying for some months.

    Hi All, when will the actual buyback happen?
    I saw after 50-80 days in one of the messages above, so probably only in or after April?

    Ksrk and jain sir ,how much percent shares are expected to be accepted in buyback looking at number of share holders below 2 lac .

    I had purchased 59 solely for buy back and sold 6 shares with a minor loss of Rs 75/share i.e. 450/ in all on 21.2 to come under small investor quota. I hope this loss will be compensated with increased acceptance in buy back.

    I purchased TCS shares on 21st February at ICICI DIRRCT .Shares are not yet credited into my demate account.Am I eligible for buy back
    S.A.KADER

    Sirs
    So record date is gone and anyone having 56 or less than 56 shares would be considered retail
    But the fall in TCS price is very dramatic.. Hope it would rise after 1-2 days

    Sirs
    Dont know why comment statement is at the end of all comments and not in begining?
    Need to scroll all to write ..

    Hi Sir, If i have only 10 shares of TCS in my demat account, then may i qualify to participate buyback, and if yes then what is the procedure of buyback shares.

    TCS buyback:-

    23.5.3. As defined in 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 the closing price on February 23, 2022,
    i.e., the Record Date, of not more than ₹200,000 (Rupees Two Lakh only). As on the Record Date,
    the closing price on NSE, being the Recognized Stock Exchange having the highest trading volume,
    was *₹ 3,610*(maximum possible assumed)per Equity Share. Accordingly, all Eligible Shareholders holding not more than *55* Equity Shares as on the Record Date are classified as ‘Small Shareholders’ for the purpose of the buyback offer.

      We can know that only after we know the schedule for the buyback i.e. when the offer closes.

    TCS Buyback acceptance ratio may go as low as 30-35% this time if price remains below 3800

    SRKji,I have 59 shares & want to sell some to come under reserved catagory. Whether BSE or NSE rate is to be considered for Rs. 2 lakh. Pl guide so that I can decide no. of shares to sell tomorrow.

      Sir,
      The closing price of the Stock Exchange where the transactions are more in that particular share is the criteria to arrive at the Category. Normally, transactions will be more in NSE. All the best.

    Ksrk sir When we can sell our TCS share after becoming entitle for buyback? On 22 nd or 23 rd and buy later .

        Sir Could you please tell me that how much time will take the whole procedure of BUY BACK?, I have purchased 132 shares in 3 different DEMAT account (different PAN) 44 in each.

      In some rare cases, shares are not being credited on second day after the purchase. Knowledgeable experts may please enlighten.

    If I have 125 share in one account so what probability of AR in general category.
    Otherwise I shall sold 89 share.
    Before record date n eligibility for retail category.

      HF ji,
      I believe that it may not be a good decision to sell that much number of shares even if they will be 75. The company is a good one and in long run the unaccepted shares, after the buyback of the shares under the General Category, can be sold at a reasonably good price. Of course, only you have to take an appropriate decision accordingly. All the best.

    SRK Sir and other learned members,
    Hope you have checked that only 1.08% shares would be tendered by the promoter.
    Request learned team members to suggest the AR for general category? Thanks

      Sir,
      As I understand, it may be between 25% to 35%. Thank you n all the best.

        Thanks SRK ji, Your words confirm my thought, I was looking to sell to bring my level to 2L, which would have lead to huge unnecessary costs. Now I would hold in general category also..
        Thanks

          Sir,
          I am also holding 71 shares in my account and 83 shares in my wife’s account. However, I would like to sell the shares in excess of 50 in each account. I don’t know your quantity of holding. What do you suggest in my case? Do you agree with my opinion or not? Sir, please enlighten me. Thank you once again for your valuable guidance from time to time.

            SRK Sir,
            I am a bit confused. The offer letter says that Promoters would tender only 1% of their holding. It was similar in earlier buyback, but their acceptance and tendering numbers were only slightly different. I understand that if in offer letter, it is written that promoter would tender some %age, it would mean that they would offer that %age in buyback and NOT the final acceptance numbers. This is but ambiguous seeing earlier buybacks..
            Please suggest, your understanding.
            I have 155, 60 and 50 shares in 3 accounts. I am thinking not to do anything with 155 nos. (General) & 50 (Small) and sell 10 shares from 60 nos to be in Small.

            For me selling 155 and then repurchasing would be a big issue and I am Ok if AR for general is even 30-40%.
            I suggest you to sell excess of 50 nos in both account, as small share holder would be definitely having better AR. I would have done that…..
            What do you say?

              Sumit ji,
              I too agree with your opinion to maintain as it is position regarding 155 shares n 50 shares. I also agree with your opinion to sell 10 shares out of the 60 shares held. Today, I am planning to do as I thought n as you also suggested in my case. Thank you n all the best.

                Thanks for revert.
                In my case, as major trade in HUF account, where for IT considerations the sell transactions values are considered, and 6% of sale is considered income, and therefore 1.8% income tax…
                So it doesn’t make sense to sell and buy again..
                Have you checked offer letters for this promoter tendering point?

                  Sumit ji,
                  In this case also, I have not received any mail regarding the offer letter.

      Challenge is
      Even if promoters are restricting themselves at 1%, there is a large base of general shareholders.

      Sir,
      Hopefully looking forward for the AR of 50% to 65%. It’s only an estimation. Thank you.

      Hi Sir, If i have tcs share with 2 different broker icici (35bshares) and zeodtha (12shares) in this case how i can apply for but back ? I will able to apply buy back from both broker ? Or i will be allowed to apply buy back from only one broker ?

        Sir,
        The number of shares against each PAN No. will be taken in to account as one unit. Though the PAN No. is same, it is likely to be considered under Retail Category as the total number of shares is 47 and price on the Record Date may not close beyond Rs. 4200/- ( 200000/47) . This is my opinion. Knowledgeable ones in this regard may correct me, if I am wrong. Thank you.

    I have TCS shares worth more than 2 lac INR. And I want to participate in buyback. What are the chances of AR ? and profit?

      Rahul ji,
      Your holdings will be considered under the General Category and hence AR may hopefully be around 25% to 35%. This is my understanding n belief. Thank you.

    टी सी एस आज चल गया। लगता है कम से कम 21फेब तक तो दौड़ेगा। पर्सनली मुझे लगता है कि 4200/4250 तो दिखा देगा।

    Hi,

    i bought 50 TCS shares, should i eligible for buyback offer? Is it true that if you have more than 44 shares in your demate account then you are not eligible for this buyback. only 44 shares should there in demate at record date ? Can anyone guide please..

      No this is not true. Actually 44 shares are only used for calculation purpose. You will be counted as Retail Investor depending upon the closing price on Record date i.e. 23.02.2022.

      If suppose closing price on exchanges is Rs.4000, then 200000/4000= 50 shares.So, if you are holding 50 or below 50 you will count under retail quota.

      Hope it is clear now

      I may add that 15 % shares i.e. 60 lakh are reserved for small investors having value less than 2 lakhs. Else, one will be considered under general quota. Usually AR of reserved catagory will be higher.

    Hi all respected members, please guide me.
    If I have just 1 share and choose to tender it in buyback, it will be 100% accepted or not ?
    I read somewhere that for 1 share it will be surely accepted.

      I think in case of Savita buy back, the fraction was ignored. But I donot remember about 1 share.

      If you are giving attention and time for the opportunity, do it rational size, I dont think you are achieving any goal with 1 share participate.

      Think wisely

    Gulf Oil Lubricants India Limited Buyback Particulars:

    Buyback size: upto 14,16,667 shares
    Buyback price : Rs. 600/-
    Mode : Through Tender Offer
    Record date : February 21, 2022
    Happy investing to all of you. Thank you.

      I have two demat a/c in same name & hold 44 tcs share in each a/c ( that is 88 share in same name). May I consider retail or general category in TCS buyback. Shivramakrishna ji kindly advise me.

        Sir,
        The number of shares against each PAN No will be taken in to account as one unit. When the PAN No. is same, it may not be considered under Retail Category. Thank you.

      Hello Sir, During TCS buyback only retail investors are considered? Currently I am holding 69 shares, so will my portfolio be considered for buyback?

    Buyback particulars of FDC LTD:

    Size of the buyback: 29,00,000 shares in all
    Mode of the buyback: Tender Offer
    Buyback price: Rs.475/-
    Record Date: 19/02/2022
    CMP: Rs.306/-

    As the size of the buyback is not a big one, ( only 1.72% of the total paid up equity capital ) one may purchase 100 to 150 shares for tendering in the buyback. Thank you n all the best to all of you.

      For FDC-
      Sir, the results are very bad, and it has already fallen much..
      I would suggest to buy below Rs 285/- only.
      If you are a risky trader try at Rs 295/-
      I am Avoiding

        Sir,
        Thank you very much for your kind guidance. I have taken note of your valuable suggestion. Very kind of you, sir.

      Can you tell me what details we have to check before applying for buyback? and how can we calculate approximate acceptence ratio

      Current arbitrage is 30%+
      Not sure of AR ER for Mayur, but this is big. I believe this will close in coming days.

        Buyback particulars of MAYUR UNIQUOTERS LTD:

        Size of the buyback: 6,25,000 shares in all
        Mode of the buyback: Tender Offer
        Buyback price: Rs.650/-
        Record Date: 23/02/2022
        CMP: Rs.476/-

        As the size of the buyback is not a big one, one may purchase 100 to 150 shares for tendering in the buyback. Thank you n all the best to all of you.

      Thanks Arth.
      KPR mills has also announced, but very small %age, so not worth discussion.

      FDC is also coming with buyback and would provide details of their Buyback tomorrow (9/02)

      Arth ji,
      On the previous occasion, my profit was Rs. 15000/- each in our two accounts. Hopefully looking forward for the forthcoming one. Thank you for sharing. All the best.

      Yesterday Mayur closed @ 470.Is it now the right time to purchase for buy back only? Not for investment.

        As the size of the buyback is not a big one, one may purchase 100 to 150 shares for tendering in the buyback. Thank you n all the best to all of you.

    15th February is the date for the postal Ballot Approval so 25 th Feb will be the most probable record date. So this feb expiry would be near by 3800 – 4000

      Buyback_1986 ji,
      Yes, the range may be between Rs.3700/- to Rs.3900/- as per the existing overall conditions. Of course, anything else may also cannot be ruled out. Thank you. All the best.

      As per my understanding, 44 is arrived at by assuming 4500 to be the price on record date. But looking to prevailing situation, it can be around 4000.So we can purchase a few more shares. Am I right?

        Tarun Davda ji,
        Please don’t take more risk. You may purchase maximum of 3 more. That’s all. Thank you n all the best.

    Today, I purchased 44 TCS @ average price of 3788 including brokerage etc. Let us see what happens but I hope to get at least 10 to 12 K out of this.
    Shall I?

      Tarun Davda ji,
      Hopefully, you will get profit of more than Rs.12,000/- in the said case. Happy investing. Thank you.

    Hi Admin, Can you please create a new thread for KPR Mill as it’s board approved 180Cr buyback at 805. Issue size seems to be around 10% of paid up equity and reserves and so the process can be completed in quick time. Not sure how much we can expect the AR/ER for retail.

    For Moil Ltd. I have 5000 shares of the Moil Ltd. And my entitlement for buyback offer is only 679 shares…

    Now the share price is approximately equal to my purchase price… So what should I do? should I tender all 5000 share in buyback offer or should I tender only 679 shares and sell the remaining shares in the market before 10 February 2022?
    please guide

    Some spike can be see before record date, record date may be around last week of this month.

    And if price sustain above 4000 during buyback window insuch case above 70% AR can be see.

    Depends on market situation 3750 is now strognt support will not break easily

    KPR Mill- 2018 buyback AR was 12.6% for reserved category. Lets check for offer. COmpany is doing good..
    Learned members kindly sugegst,

      Sir,
      Have you participated in the buyback ? If you don’t mind, can you please share the detaifs? Thank you.

        No sir, i have not participated. Also not sure, how it would play, specially with choppy market.

      In 2019 buyback AR was 100%. But this time it is not possible as the stock is splitted in sept 21 from face value of Rs. 5 to Rs. 1 and it also depend on the buyback size.

        Thanks Ankit ji. Can you kindly suggest, if it can be bought at current rate for buyback purpose??

          Sumit Ji, Company financials are Good. But still would suggest to wait for 7th Feb after board meeting. Hope there will be chances to buy at lower rate as compare to current price.

            I am also hopefully looking forward for the price around Rs. 680/-. I believe that the buyback will be through the Tender Offer. Anyhow, the details will definitely be known on 07/02/2022. Let us wait and see.

              Buyback particulars of KPR Mills are as under:

              Mode of the buyback: Tender Route
              Buyback Price : 805/- Per Share
              Buyback Size : 180 Crore
              Buyback Size in Shares : 22,36,000
              Retail Quota 15% Of Size : 3,35,400 Shares
              Record Date for Eligibility : 19 February, 2022
              I have purchased some shares @ Rs.390.05 today. Thank you.

                Sorry for the typing error. It is Rs. 690.05. Inconvenience caused is regretted.

            Abhi 50% ke ass pass rehne ki umeed hai. If the price moves towards 4000 before buyback starts, then chances will increase to 70%. Let us wait for the few months.

    KPR mill board would consider Buyback on 7th February.
    Respected members, kindly suggest

      Sir,
      Hopefully looking forward for the outcome of the meeting of the Board of Directors on 07/02/2022. We can take a decision on knowing the details of the buyback. Thank you.

    Inputs/opinion/guidance that we get here from all the experienced investors is very useful… Similar to buyback, is it possible to get the views on Rights issue? I feel it will be beneficial to grab the arbitrage opportunity here as well

      Girish Tiwari ji,
      It’s on 03/02/2022, not 05/02/2022. Moreover the previous buyback in 2020 was through the Open Offer. Let’s wait and see the outcome of the meeting of the Board of Directors. Thank you.

    Common question on Buyback

    Question = What is the tax liability on Buyback?

    Answer = Company will deduct the 20% buyback tax and rest money will be distributed among the buyback participants. Buyback participants do not have to pay any tax on capital gain arises from buyback……

    Example:

    TCS is repurchasing 4,00,00,000 shares in current buyback, with a market price of Rs. 4500. Assume that TCS has allotted these shares at Rs. 2000 per share.

    So, TCS is now liable for a buyback tax of 20% on the distributed income that is Rs. 2500, the difference between market price and issue price (4500-2000).

    The individual shareholders are no longer liable to pay taxes.

      Thanks Umesh ji for clarification. Any idea how this exemption shown in our ITRs ? I mean, which portion exempt income, LTCG or STCG?

    Umesh Ji do you think it will be good idea but more shares and move from retail to general category for TCS this time? What is the expected AR ( Acceptance Ratio ) you see for general category. Thanks

      Retail Category will be more beneficial.. In general category AR would be around 20-30% and In retails category AR would be around 50-70% depend upon Market condition.

      I guess this time the AR would be around 50-60% because price has moved quite down as compared to buyback price. We will have to watch the price movement of TCS to finally arrived at AR.

    Hi Admin, I am holding 50 shares of TCS, if share prices remains below 4000 as on buyback record date then would i be considered in retail category or general category.

    To the Gurus here,
    I seared online and there is a lot of clutter and unclarity on the topic of capital gain tax.
    Can you please share if short term capital gains are applicable for investors in buyback? And where to find the concrete info?

      Yes it (sell of shares in buyback) will be taxable as short term capital gain or loss, whatsoever if holding period is less than 12months. If holding period is more than 12 months then it will be taxable under the long term capital gain or loss, as the case may be.

        How to report Buyback income in ITR forms? I did not find any help in this regard.
        Could you please help here?

      Yes, Jaiswalji, you are right. It is clearly mentioned in Tax information section of all LOF of buy back offer.

    In my case 97 out of 200. Unaccepted 103 shares received back. Also Rs. 67900/ credited to bank A/c just before a few minutes.

    Nucleus :
    Strange only 49% acceptance in small share holder category and 100% acceptance in general.

    hard luck for me, despite knowing and believing that General would be better,,, Missed it by 10 -15 shares, due to miss calculation.

    Anyway congratulations to all, specifically General category!!

      Message Received from brocker so its 81% AR NUCLEUS SOFTWARE EXPORTS Offer for buy bid is accepted and 323 Qty shares are alloted @ Rs.700.00 – Tradebulls

      It happened in other cases as well. Like Bharat Rasayan.Retail was 36% and General was 59%.
      I got 3230 out of 4000 shares accepted.
      Thanks again Sumit and I owe this to you.
      Please keep posting other exciting opportunities for general category also.

        MOIL and Ajanta Pharma are history. Their record date is already done. So if you had a shares before that date, your category is already decided. By now people are calculating final ER and AR for them. Retail wins.

        For TCS you can still plan to be in Retail.

      Is it not that the 15% is reserved for the retail category? Which means, it the retail category offer is more than this, then it should be in the ratio of the general category. Maybe, someone needs to get it clarified from SEBI.

        Retail shareholders for TCS are only 3.60%. Rest all will fall in General category.
        15% reservation for 3.6% of holding, which clearly shows that retail category will be better off. You can do the math.

      Message Received from brocker so its 81% AR

      NUCLEUS SOFTWARE EXPORTS Offer for buy bid is accepted and 323 Qty shares are alloted @ Rs.700.00 – Tradebulls

    CDSL: Debit in a/c **for 400-NUCLEUS SOFTWARE -EQ on 21JAN

    All are accepted as i am holding 400 shares

      I want to purchase TCS for buy back only. What price should I purchase, pl advise.

        Sir,
        CMP of around Rs. 3865/- is a good opportunity to buy. Please purchase 30 shares as a first phase. Thank you.

        SRKJI, आपमें तो शिवजी, रामजी और कृष्णाजी तीनों समाये हुए हैं। आपको आभार सह हमारा प्रणाम।

          Sir,
          Now the price is around Rs. 3825/- only. If you have not yet purchased, better purchase some 15 shares now. Thank you for your kind words.

    Many Investors think ​that Max quantity for Retail Investors in TCS Buyback is 44 Shares BUT THIS IS WRONG

    Formula to Decide Retail Category is : 2,00,000 ÷ Closing Price of Stock on record date

    If TCS closes at 4,000 on Record Date then those holding up to 50 shares are RetailTCS Buyback : Answers to Various Querious asked

    1. Acceptance from Single share Participant likely to be 100 out of 100

    2. Acceptance for Other Retail Participant expected 70% as of now

    3. Record Date Expected in February End

    4. Buyback may get completed in March, 2022

    Many Investors think ​that Max quantity for Retail Investors in TCS Buyback is 44 Shares BUT THIS IS WRONG

    Formula to Decide Retail Category is : 2,00,000 ÷ Closing Price of Stock on record date

    If TCS closes at 4,000 on Record Date then those holding up to 50 shares are Retail

    SIVARAMAKRISHNA ji, namaskar….I have a query: I invested more than 2Lac Rupees & purchased TCS shares . Now will i be treated as HNI or retail?

      Sir,
      It’s the closing price on the Record Date at the stock exchange where the number of shares sold/ purchased is more than any other exchange is the criteria. Rs. 200000/ that price ( after ignoring the fractions, if any ) maybe the maximum number of shares that are considered under Retail (small shareholder) Category. If the number of shares are more than that, it will be considered under general category. So, the amount of investment other than that mentioned above is not at all the criteria. Thank you.

      Pl work on this. Open demat accounts in the name of your wife, adult son/daughters, parents etc. Transfer and split your TCS holding

    What number of minimum shares I should have on record date to be eligible for buy back offer?

      Sir,
      There is no specific condition that you should purchase a particular number of shares. You may purchase even 1 share. As Umesh ji has suggested you can purchase up to 44 shares to be considered under the Retail ( small shareholder) Category. Thank you.

    Also if possible kindly open ma page for a Escorts open offer, Its a huge arbritrage opportunity available as any time sebi can give approval for open offer at 2000 Rs, Can see as March future is running under discount it can open in feb and will close in march.

    Current rate 1865 so 135 Rs arbritrage opportunity available with 60% ER and AR will be at higher side.

    Hii Admin, Kindly open a saperate page for Nucleus Software, I think most of forum member has participated and its a super buyback for all.

    So nucleus page will be a good case study for study to any new member.

    I have 50 shares of tcs in my account and I want to offer 20 shares in buy back wether I shall be considered Retail investor or not

      Sirji, it depends on how much your 50 shares are worth on the record date.
      If share price remains below 4000 rs then you will be considered as retail.

      If not then you’ll be considered as general category.

    If i have 10 share of TCS on Record date and
    20 share of TCS on tender date So,

    How many share are eligible for buyback?
    Plz replay

    I pray God to bless you all with health, peace, success, wealth n happiness on this auspicious occasion of MAKARA SANKRANTHI, being the first significant festival of the calendar year. I pray that all of you will learn to earn more n more throughout the year. Thank you all for your lovely, affectionate, helpful, valuable, knowledgeable n thought provoking messages. All the best to all of you.

    Hinduja Global System
    Please note that HGS although announced buyback, but is in risky territory. Yesterday was record date for Rs 150 dividend and postal ballot for bonus is already out. The buyback would come earliest in Q1 FY22-23. But company has Rs 4000Cr with them and BV comes out to be ~ Rs 2500 per share and current rate is Rs 3168/- So cheapest share in the pack.
    Still it would be interesting to see how the management plays as their intentions seems to be not very pure, as of now,

    Would request other learned members to suggest and provide more details.
    THANKS

      **Correction, BV is ~ Rs 3000 -3200 per share after considering Cash received.

          Kishan Ji,
          Record date is for DIvidend and not for Buyback. If you have share today is ex date and share would trade ex-dividend. So none can NOW buy for dividend…
          Buyback details are yet to come.

      Looks like this BB plan is announced to retain the shares price. Actual Buyback quantum and price will be announced post FY22 results Audit.

    Update – Hinduja Global System
    HGS board decided buyback of Rs 1000 Cr , after Bonus in around 2 months.

      Sir,
      Thank you very much for your kind information n happy MAKARA SANKRANTHI to you all.

    For Nucleus
    Current Data – For all (General and retail ) – Only 1.35X bids received i.e overall 73% acceptance (minimum)!!!
    Total – 22,67,400 equity shares, Demand – 30,75,732
    Lets wait till tomorrow morning
    Expecting 100% AR = Finger crossed…

      Sumit ji,
      Please enlighten whether we can understand that the AR in the Retail Category will be hopefully around 60%? Thank you.

        Sir,
        Acceptance ratio would be some where between 73% and 100%.
        The applications for all is only 1.3 times. so 73% is overall. I am sure that small share holders no, would not be large as total applications are also small.
        Why are you considering 60%. Please note individual also mean individuals with greater than 2 lac value shares. Individual and small share holders are different.

          Sir,
          Thank you for your valuable views. I am in the initial process of learning and hence unable to assess properly. You are knowledgeable n experienced and I stand nowhere before you. Please continue to help me with your precious views/ suggestions.

            SRK SIr, you are very humble.
            I am very thankful to You, Umesh Paliwal ji, and other boarders who provide information about Buyback.
            I feel extremely happy on my calculation and analysis of Nucleus and knowing that promoters are not participating, after reading postal ballot.
            We should share these information as no other would tell us…

              Sumit Ji, I invested in Nucleus based on your tip. Still waiting for final AR. Please keep these info coming especially in General category.

                  Sumit ji,

                  To be honest, every investor of Nucleus software, who have purchased the shares for the buyback are really fortunate enough as no one has anticipated this reasonably stunning possible AR. YES, IT WILL BE A JACKPOT as you have rightly mentioned. Thank you.

      Very thankful for your information.
      Can you enlighten me where do you get “Only 1.35X bids received i.e overall 73% acceptance” this information

    What happens if someone holds more then 2 lakh worth of shares on record date? I believe they will not be considered as retail but HNI investor, right? How does buyback process works in that case?

    Why In the above calculation 4500 has been used as denominator to calculate number of shares purchased to be eligible in retail category?

    The computation of 2 lakh is done basis on buyback price or the price on record date?

      Sir,
      The closing price of the stock exchange where the number of shares sold/ purchased is more than any other exchange on the Record Date is the basis. Thank you.

      This is done so that retail investors’ total value of investment remains below 2,00,000 until price crosses buyback price. If the price on exchanges is above 4500, then there is no point of participating in the buyback……If we feel the price will not cross 4500 on Record date, then we can buy 2,00,000 amount of shares……

      I think even if price is above 4500, it will be worth to give in buyback as Income from shares tendeed in buyback is tax free wef 01-04-2019. Is it?

        Yes You are right. IF you have high tax implications, better to provide in BUyback..

          How to report Buyback income in ITR forms? I did not find any help in this regard.
          Any help in this regard is appreciated

    last time despite the ER at about 10-15%, the acceptance was 100% in retail category

    *TCS 2020 Buyback Detail
    1) Announcement Date – 07Oct-2020 Price 2735.95
    2) Record Date 28-Nov2020 Price (27-Nov-20) 2679.65
    3) Low after announcement 2600.
    4) Buyback opening 18-Dec-20
    5) Buyback closing 01-Jan-21
    6) Buyback price 3000.
    7) Post buyback price on 05-Jan-21 3093

    TCS Results Update:

    1. Dec-2019 = 39854 Cr
    2. Dec-2020 = 42015 Cr (5%)
    3. Dec-2021 = 48885 Cr (16% Growth)

    So, results are awesome….

    Highlights of TCS Results

    a) Revenue at 48,885 crore, +16.3% YoY; +15.4% CC YoY
    b)Industry-Leading Operating Margin at 25%; -1.6% YoY
    c) Net Income at 9,769 crore, +12.3% YoY | Net Margin at 20%
    d) Strong Client Addition: 10 New $100Mn+ Clients (total: 58); 21 new $50Mn+ clients (total: 118)
    e) Net Cash from Operations at 10,853 crore ie 111.1% of Net Income
    f) Net headcount addition of 28,238 |Workforce strength: 556,986
    g) Diverse and Inclusive: Women Employees Exceed 200,000; +68% growth in women at senior levels during 2016-21 | 156 Nationalities represented
    h) Building a G&T workforce: 100K+ market relevant skills gained in Q3 | 38K+ Contextual Masters identified
    i) LTM IT Services attrition rate at 15.3%; lowest in the industry
    j) Board recommends a buyback of shares to the tune of 18,000 Cr at 4,500 per share
    h) Dividend per share: 7.00 | Record date 20/01/2022 | Payment date 07/02/2022

      Very attractive buyback of Rs 18000 Cr and that also at very attractive price of Rs 4500. As Retailer are hardly 0.5% (as per 2020) in TCS but reservation of buyback shares are 15%, hence entitlement goes upto 40%. So, retailers just need to enjoy.

        NMC.LIFESTAR.CO.IN,
        On the previous occasion I.e., Dec. 2020/ Jan. 2021, the buyback price was Rs. 3000/- and the amount of the buyback was Rs. 16,000 crores whereas in the current buyback, the buyback price is Rs. 4500/- and the amount of the buyback is Rs. 18,000 crores. Please enlighten how the current buyback is very attractive. Thank you.

          Well, historically, buyback for retailers have been rewarding from TCS. Industry was expecting buyback of 16000 Cr, but it came with 18000 Cr. Isn’t this encouraging? Also, premium is 17% and we know that historically the buyback prices have crossed within 3-4 months.. So going buy trend, one can expect 15-20% returns over next 3-5 months (if trend works).. if this is not attractive, then I don’t want to explain what can be?? Please explain if you have any other opinion..

            NMC.LIFESTAR.CO.IN,
            Thank you very much for your kind response. Only in the academic interest, I placed my query because the amount is not in proportion to the price. Anyway, I agree that the company has not disappointed us.

          If you see history, Retail shareholding (those having shares worth below Rs 2L on record dates) have been less than 0.5% of overall company shares. I can think that over last 1 year, this number would have gone up, but may not have crossed 1%.

      Umesh ji,
      Thank you very much for your kind consideration to help the readers by sharing the details of the results. Please continue to enlighten.

    Hinduja Global, would be meeting for Buyback…
    FYIP.. Pl study and suggest.

      Company got lot of cash by selling Subsidiary.. Offering Rs 150/- as dividend, bonus 1:1 and Buyback.

      Seems to be very high risk…

        Sir,
        Hopefully looking forward for the details of the buyback to be known on 14/01 during the board meeting of the company. Thank you.

    this is a buyback where 10% profit could easily be made by retail category.
    The AR is likely to be 100%.
    And such stocks are good for the long run even otherwise.
    Check out the buyback price before committing your entire 2 lacs.
    ( I have invested 1/3rd on today’s price in 4 folios)

    last time pe tcs 1835 tha tab 2100 ka buy back huwa then now 3890 10/01/2022 i think 4200 is the buy back price for this year.

      Sir,
      Hopefully looking forward for my expected Buyback price of not less than Rs.4250/-. Of course, your estimated price of the buyback is also logical. Thank you n all the best.

        As per the Senior Research Analyst of Zee Business the buyback price is likely to be not less than Rs.4400/-. Hopefully looking forward for the details of the buyback.

    TCS-
    In earlier buyback from TCS, 3 out of 4 times, the AR was 100% as the market rate has exceeded the Buyback price. 1 time it was greater than 75%. So I take it to be a sure shot profit, unless some unforeseen happens.
    Now the important point would be the rate of entry for buyback..
    Would 3838 be Ok or wait for 3778, or buy even at 3939 ( The possible price on Monday).
    Respected members, kindly suggest.

      Sumit ji,
      Today I have purchased 20 shares @Rs.3880/-. I will purchase 20 more after the Q3 results to be announced on 12th. Buyback particulars will also be known on the day.

        SRK ji,
        I bought 100@3870, 50 @3888 and 20@3856… May buy some more if it falls now to 3700… My earlier average of 100 nos is around 3000… But would need to dump or re-align in portfolios, so as to come in small share holder, which would be approx 50 shares…
        Thanks

    Umesh ji,
    Very kind of you. Please continue to help by promptly responding as is being done. Thank you.

    FWD- TCS

    Free Cash flow for FY22(E) id Rs33,000 cr~85% payout is generally committed. So total payout can be ~30k cr,
    Dividend worth Rs5000cr is already paid, which leaves room for another 25-28kcr even assuming 100% payout.

    Thus, Buyback size expected at 20,000cr (~1.5% if equity) and this would leave room for further dividend of Rs15-Rs20 for H2 overall.

        Since minors do not have trading account. if the minor is eligible, the trading id should be of minor or guardian? What is the procedure for minors to participate in the buyback? Explain in details

    Get ready guys for the mega buyback of the year….

      Umesh ji,
      Thanks for support.
      Your support is our main requirement for knowing and understanding buybacks.
      Request to continue with your support

      Hi Sir, If i have tcs share with 2 different broker icici (35bshares) and zeodtha (12shares) in this case how i can apply for but back ? I will able to apply buy back from both broker ? Or i will be allowed to apply buy back from only one broker ?

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