TCS buyback was approved by board members in a meeting held on 15th Jun 2018. In this TCS buyback offer, TCS is going to buyback nearly 7.6 crore shares at a price of Rs2100 per share. The total amount of TCS buyback offer is Rs16,000 crore. As per SEBI guideline, 15% of total buyback amount should be kept for RII category. So 2400 crore is a reserve for RII investors.
TCS Buyback Premium:
On Friday, TCS stock was closed at Rs 1841, up by 3% after buyback news. Rs 256 is possible to gain, which is 14% if you participate in TCS Buyback offer.
TCS Buyback Acceptance Ratio:
Last year in the month of May Company announced a buyback of Rs 16,000 crore. After last year TCS buyback offer, the stock has moved nearly 50% upside. Last year acceptance ratio was 100%, so if this time you may expect acceptance ratio of 80%, means if you have 10 shares then the company will buyback 8 shares. And you profit will be nearly 8*256 = Rs 2048.
Must Read: How to Calculate Buyback Acceptance Ratio?