TCS Board clears Rs 16,000 cr share buyback; biggest in India

The buyback size works out to 2.85% of firm’s paid up equity capital, at Rs 2,850 a share

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Tata Consultancy Services’ (TCS’) board of directors has approved a proposal to buyback up to 5,61,40,351 equity shares of the company for an aggregate amount not exceeding Rs 16,000 crore, the company informed BSE in a filing.

The buyback size works out to 2.85 per cent of the company’s total paid up equity share capital, at Rs 2,850 per equity share.

“The buyback is proposed to be made from the shareholders of the company on a proportionate basis under the tender offer route using the stock exchange mechanism in accordance with the provisions contained in the Sebi (Buy Back of Securities) Regulations, 1998, and the Companies Act, 2013, and rules made thereunder,” the filing said.

Further, the buyback size does not include any expenses incurred or to be incurred for the buyback like filing fees, advisory fees, public announcement publication expenses, printing and dispatch expenses, and other incidental and related expenses.

The company also said that the buyback is subject to approval of the members by means of a special resolution through a postal ballot. The public announcement setting out the process, timelines and other requisite details will be released in due course in accordance with the buyback regulations. Read more

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Is it a good time to buy Infosys?

Is it a good time to buy Infosys?

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Royal Bank of Scotland’s (RBS’) last week’s decision of not pursuing its plan to separate and list a new bank –Williams & Glyn (W&G) – hit Infosys in trade on Tuesday with the stock plummeting 3% in intra-day deals to its eight-month low of Rs 1,028 levels on the National Stock Exchange (NSE).

Click here to track Infy’s stock price movement

Since then, it has recovered and is trading at Rs 1,046 levels, down nearly 1.5% around noon deals. By comparison, the Nifty 50 index was trading lower by 0.7% at 8610 levels, while the Nifty IT index slipped 1.3% to 11,029 levels.

Also Read: I am disappointed, says Infosys CEO Vishal Sikka in a letter to employees

Given the RBS’ decision, Infosys would see a ramp down of around 3,000 resources. The likely impact on revenue could be around $50 million, reports suggest. This comes at a time when Infosys recast its annual revenue guidance for FY17 while announcing its results for the June 2016 quarter to 10.5 – 12% in constant currency (CC) terms, as against a market expectation of 11.5 – 13.5%.

While the decision dented sentiment on Tuesday, analysts had already warned regarding such Brexit-related shocks.

Also Read: Infosys sticks to 2020-vision despite cut in FY17 outlook

Analysts at Nomura, for instance, had cautioned in their July report that the Brexit impact are not incorporated in the guidance and could cause downside risks going ahead.

“While the company has not seen any delay in decision making on account of Brexit, it remains cautious in the near-term given the potential for a high degree of volatility and uncertainty across industries, especially in the financial services which could lead to softer demand in the coming quarters as companies decide on their future strategy regarding the UK and Europe. However, over the longer term, the company sees possibility of additional opportunities,” wrote Ashwin Mehta and Rishit Parikh of Nomura in their July post Q1 result report on Infosys.Read More

David Cameron to resign today, Theresa May to become UK PM

David Cameron to resign today, Theresa May to become UK PM

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David Cameron will resign today and Britain will get its first female prime minister since Margaret Thatcher, as British Home Secretary Theresa May will take over the post.

After failing to convince UK to remain in the European Union in a shocking referendum, Cameron had announced in June that he would step down by October,

May’s only remaining rival to replace Cameron — Energy Minister Andrea Leadsom — pulled out of the race following controversy over comments she made about motherhood and leadership.

“Obviously, with these changes, we now don’t need to have a prolonged period of transition. And so tomorrow I will chair my last cabinet meeting. On Wednesday I will attend the House of Commons for prime minister’s questions. And then after that I expect to go to the palace and offer my resignation. So we will have a new prime minister in that building behind me by Wednesday evening,” Cameron told reporters outside 10 Downing Street on Monday.

May, who actually supported Britain remaining in the EU, reiterated her commitment toBrexit on Monday.

“Brexit means Brexit, and we’re going to make a success of it. There will be no attempts to remain inside the EU. No attempts to rejoin it by the back door. No second referendum. The country voted to leave the European Union, and as prime minister, I will make sure we leave the European Union,” she said. Read More

Britain’s Theresa May launches bid to succeed PM Cameron post Brexit

Britain’s Theresa May launches bid to succeed PM Cameron post Brexit

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Interior minister Theresa May vowed to unite Britain as she launched her bid to succeed David Cameron as prime minister with a letter to The Times, the newspaper has reported.

The Conservative leader resigned in the wake of Britain’s vote to leave the European Union in a June 23 referendum that sent shockwaves through the continent.

Like Cameron, May supported remaining in the bloc but played a low-key and conciliatory role in the campaign that has seen her tipped as a unifying figure.

In her letter to The Times, May announced a “mission to make Britain a country that works for everyone,” according to the broadsheet yesterday.

“If you’re from an ordinary, working-class family, life is just much harder than many people in politics realise,” May wrote.

The appeal to working-class voters by the vicar’s daughter was aimed at her main rival for the leadership, the Latin-quoting former mayor of London and prominent “Leave” campaigner Boris Johnson, who projects a more upper-class image.

Cameron promoted May, 59, to Home Secretary following his 2010 election victory and she kept the role after his 2015 re-election.

Known as a hardliner on immigration, May’s stern demeanour and wardrobe of sober suits have drawn comparisons with 1980s Prime Minister Margaret Thatcher.

Cameron’s successor is expected to take office in early September. Read More

Read More Topics:

After Brexit, UN ‘more important’ to Britain: UK diplomat

Post Brexit, London must relinquish euro business: Francois Hollande

EU leaders tell Britain to exit swiftly, market rout halts

Barack Obama does not see major, cataclysmic changes after Brexit

Brexit impact: 10 things to know about the political storm in UK

Brexit impact: 10 things to know about the political storm in UK

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Even as Britain is coming to terms with its electorate’s vote to exit the European Union(EU), political turmoil in the UK has escalated too.

While the European Union has asked UK to initiate the exit process swiftly, Scotland could throw a spanner in the works as it had voted to ‘remain’ in the EU. Meanwhile, the Labour Party is facing a revolt from its senior leaders, even as uncertainty prevails over Prime Minister David Cameron’s successor. Cameron quit the day the results of the Brexit referendumcame in, leaving it to his successor to deal with what will likely be a messy exit.

Here are 10 things to know about the political crisis that has hit the UK.

Scotland’s threat

Scotland is said to be considering a referendum to be independent from UK if Britain actually manages to exit the EU. The move is said to be under consideration after the nation voted to ‘remain’ in the EU. Scottish First Minister, Nicola Sturgeon has also threatened to block Brexit, stating that the decision will need the consent of Scotland’s semi-autonomous Parliament.

Filling the void

British Prime Minister David Cameron announced on Friday that he will step down from the office in three months and that a new leader will take over by October. The Conservative Party has been in a huddle, scouting for a replacement to the PM soon, amid uncertainty over next plan of action for the country. Some reports indicate ex-mayor Boris Johnson, who favoured the ‘Leave’ campaign, could be his successor. Read More

Brexit: EU referendum voting gets undeway in UK

Brexit: EU referendum voting gets undeway in UK

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Polling stations across the United Kingdom opened on Thursday morning to decide the historic referendum on whether the country should remain a member of theEuropean Union or leave the politico-economic union of 28 member states.

The voting will take place between 7 a.m. and 10 p.m. local time.

The national referendum is the third in UK history and comes four months after battle for votes between the ‘Leave’ and ‘Remain’ campaigns.

Prime Minister David Cameron criss-crossed the country in a final effort to warn Britain’s voters against rejecting the EU in the historic poll yesterday.

This decision will also read as a referendum on his premiership.

Last night, he was joined by former prime ministers Gordon Brown and Sir John Major, the Liberal Democrat leader, Tim Farron, and the Green MP Caroline Lucas, at events in Bristol and Birmingham, reports the Guardian.

The prime minister has been pressing the message that today’s decision will be irreversible and there will no coming back if the UK votes to leave the EU. Read More