November 14 Cut-Off for 10 Crore Shares Repurchase at 1,800 Rupees, Amid New Tax Rules Treating Gains as Dividends.
The software exporter's board set November 14 as the record date for its largest-ever 18,000 crore rupee share repurchase, targeting 10 crore shares at a 19% premium to current levels. This tender offer, approved last month, returns 2.41% of equity capital, boosting EPS 3-4%.
Market reaction lifted the stock 1% to 1,500 rupees, adding 5,000 crore rupees to valuation in a Nifty IT up 0.8%. The move highlights 15% Q2 revenue growth to 40,000 crore rupees, with U.S. deals comprising 60%.
Policy shifts under Budget 2024 tax buyback proceeds as dividends at slab rates, up to 30%, curbing retail participation but favoring institutions with 20% withholding. Economic analysis forecasts 0.5% EPS accretion, supporting 7% sector growth.
Consumer trends in outsourcing favor AI-augmented services: 50% clients allocate 25% budgets to automation, per Gartner. Innovation via generative tools cuts delivery costs 15%, eyeing 100 billion dollar addressable market. The repurchase sustains 300,000 jobs, fortifying a 200 billion dollar export engine.
