The Tata Consultancy Services (TCS) board on Friday approved a Rs 16,000 crore share buyback proposal. The promoters hold 71.92 percent stake in the company.

The board approved the buyback through the tender route of up to 7.6 crore shares at Rs 2,100 per share. The buyback price is fixed at almost 15% premium as against the current market price.

India’s biggest software exporter had said previously that it would pay out up to 100% of its free cash flows to shareholders. This was announced by Rajesh Gopinathan, Chief Executive Officer, TCS, at a recent media interaction.

Also read: What was expected out of the board meeting?

"TCS buyback is another trigger for re-rating, we expect the buyback to be about 12,000 to 15,000 crore," Elara Capital had earlier said.

The company's market capitalisation is back at Rs 7 lakh crore.

Last year, TCS announced a Rs 16,000-crore buyback of up to 56.1 million shares at Rs 2,850 a piece. That buyback, which closed on May 31, returned cash to shareholders at a substantial premium.

First Published:Jun 15, 2018 3:04 PM IST