TCS m-cap goes past Rs 10 lakh cr-mark as shares jump over 6%; second Indian firm to achieve feat after RIL

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There are reports that TCS in its board meeting later this week may consider a share buyback proposal

IT major Tata Consultancy Services became the second Indian company after Mukesh Ambani-led Reliance Industries to hit the market valuation of Rs 10 lakh crore.

There are reports that TCS in its board meeting later this week may consider a share buyback proposal.

In the morning trade on Monday, Tata Consultancy Services (TCS) shares surged over 6 percent.

The company's market valuation jumped to Rs 10,03,012.43 crore in afternoon trade on the BSE after the stock rose by 6.18 percent to reach its record high of Rs 2,678.80.

On the NSE, the TCS shares jumped 6.16 percent to an all-time high of Rs 2,679 per share.

TCS last month became the second Indian firm to have a market valuation of over Rs 9 lakh crore after Reliance Industries.

It is the second most-valuable domestic firm in terms of market capitalisation.

Reliance Industries Limited is the first Indian firm to have crossed the Rs 10 lakh crore market valuation mark. Last month, RIL became the first Indian company to hit a market cap of $200 Billion (about Rs 14.5 lakh crore). The RIL scrip rose to its all-time record high of Rs 2344.95 on September 11, 2020.

The market valuation of RIL has also crossed Rs 15 lakh crore-mark - the highest for any listed company in the country.

TCS in a regulatory filing on Sunday night said that the board of directors will consider a proposal for buyback of equity shares of the company, at its meeting to be held on October 7, 2020.

The TCS board is also slated to consider its financial results for the September quarter and declaration of a second interim dividend to the equity shareholders at that meeting.

In 2018, the Mumbai-based company had undertaken a share buyback programme worth up to Rs 16,000 crore.

The buyback, at Rs 2,100 per equity share, had entailed up to 7.61 crore shares. In 2017 too, TCS had undertaken a similar share purchase programme. TCS had announced the mega buyback offer as part of its long-term capital allocation policy of returning excess cash to shareholders.

With agency inputs

Image credit: Business Standard

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