Shares of Tata Consultancy Services (TCS) ended with over 2% gains on Wednesday, adding Rs 16,539 crore to its market valuation, on the company’s plan to buy back shares at its board meeting later this week.
The stock gained 2.43% to end at Rs 1,824.20 on the BSE. During the day, it rose by 2.86% to Rs 1,832. On the NSE, shares of the company went up by 2.41% to close at Rs 1,824.
The company’s market valuation surged Rs 16,539.68 crore to Rs 6,98,408.68 crore. In terms of equity volume, 3.54 lakh shares of the company were traded on BSE and over 53 lakh shares changed hands on NSE during the day.
“…the board of directors will consider a proposal for buyback of equity shares of the company, at its meeting to be held on June 15, 2018,” TCS said in a BSE filing late last night.
The Mumbai-based company, however, did not disclose any further details about the buyback proposal.
Share buybacks typically improve earnings per share and return surplus cash to shareholders, while also supporting share price during period of sluggish market condition.