Tata Sons, the main promoter of Tata Consultancy Services (TCS), has raked in about Rs 10,278 crore by tendering in 3.61 crore shares in the recently concluded share buyback offer of TCS. The number of shares sold by Tata Sons represents almost two-thirds of the total shares on offer by TCS in the buy back scheme which ended on May 31.
Post this buyback, Tata Sons holds 73.57% of TCS, while it’s holding before the buy back was 73.31%, while the general category’s shareholding fell to 26.43% from 26.69%. FE had earlier pointed out that to maintain their holding at the existing level, promoters needed to tender about 4.12 crore shares, leaving only 1.5 crore shares to be bought from the public, implying a minuscule 0.76% of the current share capital.
However, to maintain their shareholding below 75% of the post-buyback shareholding structure, promoters needed to tender at least 87.99 lakh shares. Capital markets regulator SEBI’s rules mandate that the promoters holding in a listed company should be below 75% of equity shares, with the remaining held by other investors including public holders.
Besides Tata Sons, the Government of Singapore, Copthall Mauritius Investment and EuroPacific Growth Fund made Rs 335 crore, Rs 187 crore and Rs 161 crore respectively, by tendering equity shares worth 2.10%, 1.17% and 1.01% respectively of the total paid up equity of TCS.
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In the buyback, about 12.5 crore shares, more than double the 5.61 crore shares that were to be accepted by the company, were tendered by TCS shareholders. Small shareholders tendered nearly 12 lakh shares, which was just 20% of the quota that the company had proposed to repurchase from them. The shortfall was compensated by institutional investors who tendered more than two and a half times their quota of shares.
The buyback offer was open from 18 May until 31 May, with TCS looking to repurchase 5.61 crore shares through the tender route at a fixed price of Rs 2,850 per share on a proportionate basis for an aggregate amount of Rs 16,000 crore.