India’s largest software services firm Tata Consultancy Services (TCS) will commence its Rs16,000-crore mega buyback offer from May 18.
The buyback programme, which received shareholder approval last month, will open on May 18 and close on May 31, the company said in a regulatory filing.
TCS will dispatch the letter of Offer for the buyback to eligible shareholders on or before May 16, it added.
The share buyback, if successful, will be India’s biggest, surpassing Reliance Industries’ 2012 share repurchase of Rs10,400 crore.
Share buybacks typically improve earnings per share and return surplus cash to shareholders while also supporting share price during periods of sluggish market condition.
The Indian IT companies have been under pressure to return excess cash on their books to shareholders through generous dividends and buybacks.
TCS had earlier said that it received suggestions from investors over the need for certainty on dividend policy along with share buyback to distribute the cash.