TCS is most certainly a star today. The stock surged over 5.5% to hit a new 52-week high at Rs.2666.30 and continues to currently trade at Rs.2655 levels.
Today morning, the company announced that its Board said that it will consider a buyback of shares and a meeting for the same has been scheduled for 7th Oct.
The company had gone for a buyback program worth Rs.16,000 crore previously in 2018. It has bought back shares at Rs.2100/share. In 2017 also, there has been a similar buyback.
This time around, brokerages houses are expecting the buyback to the tune of Rs.20,000 crore.
In another news, TCS said that it is providing Rs.1218 crore as ‘exceptional item’ on the EPIC Systems matter. EPIC, in 2014 had filed a legal claim against TCS in the court of Western District Madison, Wisconsin alleging infringement of its proprietary information.
On August 20, 2020, the US Court of Appeals, 7th Circuit, Chicago, returned a verdict on the appeal filed by TCS, reducing the damages award. The Court held that the punitive damages award of USD 280 million is constitutionally excessive, vacated the punitive damages award and directed the Trial Court to reassess the punitive damages.
The company is to declare its Q2FY21 performance on 7th Oct.