The board of India's largest IT services firm Tata Consultancy Services (TCS) board will meet on October 7 to consider a share buyback proposal. "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," Tata Consultancy Services (TCS) said in a regulatory filing. No other details of the buyback plan were disclosed
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 program worth up to ₹16,000 crores. The buyback, at ₹2,100 per equity share, had entailed up to 7.61 crore shares. TCS had announced the mega buyback offer as part of its long-term capital allocation policy of returning excess cash to shareholders.
In a separate filing, TCS said in the EPIC Systems Corporation matter, it would be providing ₹1,218 crores as an exceptional item, in the financial results for the three and six months ended September 30, 2020.
In October 2014, EPIC had filed a legal claim against TCS in the court of Western District Madison, Wisconsin alleging infringement of Epic's proprietary information.
"On August 20, 2020, the US Court of Appeals, 7th Circuit, Chicago, returned a verdict on the appeal filed by TCS, reducing the damages award. The Court held that the punitive damages award of $280 million is constitutionally excessive, vacated the punitive damages award, and directed the Trial Court to reassess the punitive damages," TCS said in its filing.