Today TCS Share soars by 7.55% and hit an all time high of 2728.10 in Intraday . After Hitting high of 2,728.10 share price closes at 2,713.95. TCS share hit all time high after Buyback news by company ahead of AGM on 7 October 2020 . Due to this all time high TCS becomes second Company after Reliance Industries Limited to Cross 10 Lakh Crore M-Cap .
TCS informed Exchange on 4 October 2020 that Board of Directors will consider a proposal for buyback of equity shares of the company .
Company also informed that Quarter 2 result will also be announced in this meeting . Also company can declare the Interim Dividend for it’s Shareholders .
Share Price hits all time high because Analysts are sure that Quarter 2 results will be strong .
Today TCS hit the market Cap of 10 Lakh Crore and become the only company after Reliance Industries Limited to reach 10 Lakh Crore Market Cap .
This is the second Buyback plan from TCS . Previous Buyback Plan was done in 2018 . 2018 Buyback Plan was done at Rs 2,100 per equity share and total share was 7.61 Crore . Total Amount of that Buyback Plan is Rs 16,000 Crore .
This Buyback Plan of TCS is basically a part of reward it’s shareholders because TCS is having surplus cash with it .
Majority of IT Companies bring these types of offers for it’s Share holders . These offers are either in the form of Dividend or Buyback .
In 2019 Wipro also rewards it’s shareholders by Bringing Buyback Plan . Buyback price is Rs 325 at that time . During that time Wipro Share was trading at Around Rs 250 . Company Offers huge profit to it’s Shareholders through BuyBack .
Other Reason of Buyback is that Dividend is Taxable . Companies prefer to do buyback instead of Paying Dividend to it’s Shareholders . Buyback is mainly done by IT Companies because they have surplus Cash with them .