Tata Consultancy Services (TCS) shares surged over 2% to Rs 3794.15 on the BSE after the infotech major approved the buyback of shares worth up to Rs 18,000 crore.

The company stated that its members approved the buyback of up to Rs 18,000 crore in shares by postal ballot by adopting a special resolution. “The members of the company have approved the buyback by passing a special resolution through postal ballot,” the company said in a stock exchange filing. 

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TCS’s board of directors announced the buyback of up to 4,00,00,000 fully paid-up equity shares with a face value of Rs 1 each on January 12, 2022, for an aggregate amount of Rs 18,000 crore.

TCS has set Wednesday, February 23, 2022, as the record date for determining entitlement and the names of equity owners eligible to participate in the repurchase.

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The company said in a regulatory filing that Tata Consultancy Services (TCS) promoters – Tata Sons and Tata Investment Corporation Ltd – intend to participate in the IT service major’s Rs 18,000 crore buyback offer by tendering approximately 2.88 crore shares.

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According to the company’s postal ballot notice, the remote e-voting period began on January 14, 2022, and concluded on February 12, 2022. The postal ballot results will be released on February 15, 2022.

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Tata Sons, which owns around 266.91 crore shares, plans to tender 2.88 crore shares, while Tata Investment Corporation Limited, which owns 10,23,685 shares, plans to tender 11,055 shares.

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The company reported its earnings for the quarter ended December 2021 last month. Its consolidated net profit increased 12.2% to Rs 9,769 crore. The Mumbai-based company’s revenue increased 16.3% in the current quarter to Rs 48,885 crore, up from Rs 42,015 crore in the previous fiscal period. In addition, the company has declared a dividend of Rs 7 per share.