TCS announced a share buyback program that provides an opportunity for a 14.6% return over 3 months, or an annualized return of 73%, for small shareholders investing Rs. 1.7 lakhs. There is a risk the buyback process could take longer than expected, reducing the annualized return. Additionally, the return could be lower if fewer shares are bought back or the remaining shares sell for less than the expected Rs. 2300 per share in the open market.
TCS announced a share buyback program that provides an opportunity for a 14.6% return over 3 months, or an annualized return of 73%, for small shareholders investing Rs. 1.7 lakhs. There is a risk the buyback process could take longer than expected, reducing the annualized return. Additionally, the return could be lower if fewer shares are bought back or the remaining shares sell for less than the expected Rs. 2300 per share in the open market.
TCS announced a share buyback program that provides an opportunity for a 14.6% return over 3 months, or an annualized return of 73%, for small shareholders investing Rs. 1.7 lakhs. There is a risk the buyback process could take longer than expected, reducing the annualized return. Additionally, the return could be lower if fewer shares are bought back or the remaining shares sell for less than the expected Rs. 2300 per share in the open market.
13% in 3 months (62% annualized) Investment Details
TCS announced buyback on 20th February - goo.gl/vLXyTK
15% reservation for small shareholders (those holding upto 70 shares) We expect 60% to 70% shares to be bought back Buy back process to get completed in 3 months. Shares left after buyback to be sold in open market Investment amount Rs 1.7 Lakhs Gain Rs. 16,900 Return 14.6% Annualized return 73% Return Calculation Risk Factors
We anticipate the process to take 3 months, due to unforeseen
reason the time period can increase also This will lead to decrease in annualized return We anticipate 60% shares to be bought back In case of decrease in amount being bought the return can reduce We anticipate to sell 40% shares in open market at Rs. 2300 In case of decrease in market price below Rs. 2300 there will reduction in the return