Podcast | Story of the day - TCS to consider buyback

One of the news releases that set the markets abuzz this week was about a potential buyback of shares by TCS. TCS mentioned in a regulatory filing that its board will discuss a buyback of its equity shares on Friday.

Why the buyback? Indian IT companies have been under pressure to return excess cash on their books to shareholders through generous dividends and buybacks. Share buybacks typically improve earnings per share and return surplus cash to shareholders, while also supporting share price during periods when market condition are sluggish.