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Case Code: FINC134
Case Length: 13 Pages 
Period: 2017   
Pub Date: 2018
Teaching Note: Available
Price:Rs.400
Organization : Tata Consultancy Services Limited (TCS)
Industry : Information Technology
Countries : India
Themes: Share buyback
Case Studies  
Business Strategy
Marketing
Finance
Human Resource Management
IT and Systems
Operations
Economics
Leadership & Entrepreneurship

India`s largest Share Buyback by TCS: To Participate or Not?

 

ABSTRACT

 
The case study discusses India’s largest share buyback offer, issued by Tata Consultancy Services Limited (TCS), a leading global Indian IT company. Although, many experts believed that it was a good chance for investors of TCS to encash their investment as the buyback price of Rs. 2850 per share represented a premium of 25.51% on the volume weighted average market price of the share price during the three months before February 15, 2017, on the National Stock Exchange (NSE), others felt that investors should ignore the buyback and wait for the upside movement in the stock as investment in the company was a good long-term bet. Now, the investor has to decide whether to tender the stock or not.
 
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Issues

The case is structured to achieve the following teaching objectives:
  • To understand the regulatory requirement related to share buyback
  • To understand the process of the share buyback
  • To debate whether shareholders should participate in the tender offer or not
  • To explore the various motives behind a share buyback
  • Analyze the effect of a buyback On a company’s key performance variables
Contents
INTRODUCTION
SHARE BUYBACK IN INDIA
ABOUT TATA CONSULTANCY SERVICES LIMITED
SHARE BUYBACK OF TCS
ANALYSTS VIEWS OF SHARE BUYBACK
TENDER OR SELL
EXHIBITS

Keywords

Share repurchase, Buyback, Dividend, Share buyback in India, Tender offer, Promoters participation, Distribution of wealth, Regulatory Framework of Buyback, Postal Ballot Form

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