TCS Buyback 2023: Key Details & Price Expectations

In this article, we delve into the anticipated TCS buyback for 2023, its expected pricing, and other significant details. We’ll also explore whether other major IT players like Infosys, Wipro, and HCL Tech are planning their own buyback offers.

TCS Buyback Price

The market is buzzing with expectations regarding TCS’s share buyback. It is estimated to be a substantial ₹18,000 crore. Moreover, other prominent IT companies, including Infosys, Wipro, and HCL Tech, may be following suit with their respective share buyback offers.

TCS’s Upcoming Announcement

Today, Tata Consultancy Services (TCS), a leading Indian IT major, is scheduled to announce its Q2 results for 2023. The market eagerly awaits the outcome of its board meeting concerning the share buyback. TCS has officially declared that its board of directors will consider and approve the share buyback during the meeting on October 11, 2023. Market expectations suggest that the TCS buyback price per share could range from ₹4,300 to ₹4,500, with an estimated buyback size of ₹18,000 crore. If confirmed, this would mark TCS’s fifth share buyback in the last six years.

TCS Buyback 2023: Price, Size, and Projections

Avinash Gorakshkar, Head of Research at Profitmart Securities, shares insights on the TCS buyback for 2023. He notes that the Q2 results for 2023 season are commencing, with TCS’s board reviewing and approving the Q2FY24 results. The market is especially attentive to TCS’s share buyback announcement. According to Gorakshkar, the expected TCS buyback size is around ₹18,000 crore, and the share price for the buyback is predicted to fall between ₹4,300 and ₹4,500 per share.

TCS Buyback History

Reviewing TCS’s history of buybacks, it’s important to note that this would be the fifth time the IT behemoth has engaged in a share buyback within the last six years. TCS conducted buybacks in 2017, 2018, 2020, and 2022. In May 2017, TCS initiated a buyback of shares worth ₹16,000 crore at a premium of approximately 18%. In August 2018 and November 2020, TCS again announced buybacks, each valued at ₹16,000 crore, with premiums of 18% and 10%, respectively. In February 2022, TCS declared a buyback amounting to ₹18,000 crore with a premium of nearly 17%.

Will Other IT Majors Follow Suit?

TCS buybacks often set a precedent for other IT majors. After TCS’s 2017 buyback, Infosys declared its own share buyback in November 2017, offering a premium of approximately 20%, with a buyback price of ₹575 per share.

Similarly, Wipro’s buyback was announced in September 2017, offering a premium of 23% and a buyback price of ₹240 per share. In June 2019, Wipro once again declared a share buyback at ₹325 per share, providing a premium of around 16%. In December 2020, Wipro declared a buyback at ₹400 per share, delivering a premium of about 6%. Most recently, in June 2023, Wipro announced a share buyback at ₹445 per share, granting an impressive premium of approximately 20% to shareholders who participated in the buyback offer.

In May 2017, HCL Tech initiated a share buyback at ₹500 per equity share, providing a premium of 20%. In August 2018, HCL Tech announced another share buyback at ₹550 per share, delivering a 16% premium.


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