Tata Consultancy Services’ Stock Falls Post announcement of Buyback

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.

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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.

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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.

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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.

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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.



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