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TCS m-cap again hits Rs 7 lakh crore mark on share buyback plan
The share price of the IT bellwether was quoting 2.75 percent.
New Delhi: The market capitalisation of Tata Consultancy Services (TCS) Ltd on Friday again hit Rs 7 lakh crore mark (a level the company crossed in May) following news that its board has approved share buyback of up to Rs 16,000 crore.
Tata Consultancy Services (TCS) today became the first company to close the trading session with a market valuation of over Rs 7 lakh crore
Led by the gain in the stock, the company's m-cap moved to Rs 7,05,012.98 crore. The share price of the IT bellwether was quoting 2.75 percent at Rs 1,841.45 on BSE. At NSE, the scrip closed at Rs 1,840, up 2.93 percent.
The buyback, at Rs 2,100 per equity share, entails up to 7.61 crore shares or 1.99 per cent of the total paid up equity share capital.
Chart courtesy: BSE
Last year, TCS had undertaken a Rs 16,000-crore mega buyback offer, entailing 5.61 crore shares at a price of Rs 2,850 per scrip.
During its Q4 FY2018 earnings call, TCS CEO Rajesh Gopinathan had said the company's intention is "to keep capital return close to 80-100 per cent of annual free cash flow".
In April, TCS became India's first company to hit market capitalisation $100 billion. In FY 2018, TCS reported revenue of Rs 1,23,104 crore, growing 4.4 percent over the previous year.
TCS is the country's most valued firm followed by Reliance Industries Ltd with a m-cap of Rs 6,42,363.07 crore, HDFC Bank (Rs 5,28,652.06 crore), HUL (Rs 3,50,929 crore) and ITC (Rs 3,22,803.60 crore) in the top five list.
With PTI Inputs