Tata Consultancy Services (TCS) witnessed a decline in its stock value following its declaration of a buyback on Friday.
The IT giant is set to repurchase 4.09 crore shares, equivalent to 1.12% of the total paid-up equity share capital, amounting to Rs 17,000 crore, scheduled for Saturday.
The buyback price has been fixed at Rs 4,150 per share, offering shareholders a premium of 20.45% and 20.26% on the volume weighted average market price of the equity share on BSE and NSE,
respectively, for the preceding three months, as disclosed in the shareholder report.
On Friday, TCS’s stock experienced a 0.67% decline to reach Rs 3,484.84 per share on the NSE.
Despite the initial drop, it recovered slightly to trade 0.47% lower at Rs 3,491.65 per share, compared to the marginal 0.05% gain in the benchmark Nifty.
Reflecting on its performance, TCS has seen a year-to-date rise of 9.34%.
The relative strength index stood at 55.24, signaling a balanced market sentiment.
Analysts tracking TCS, as per Bloomberg data, depict a varied stance on the stock: 23 out of 45 maintain a ‘buy’ rating, 13 suggest a ‘hold,’ while seven advocate a ‘sell.’
Considering the projections, the average of 12-month analyst price targets indicates a potential downside of 6% from the current levels.