India’s largest software company, TCS , confirmed this morning it would consider doing a buyback on February 20, in line with recent calls by investors that IT companies look for ways to return excess cash to shareholders.
The company today informed exchanges about its intention but this was confirmed by outgoing TCS CEO N Chandrasekaran in an exclusive interview.
In the interview, Chandrasekaran, who is slated to take over as Tata Group chief, said the company had received suggestions from investors over the need for certainty on dividend policy along with share buyback to distribute the cash.
“These two comments have come from investors and we will discuss it in the board,” he said.
Without giving any further details on the issue in an interview , he said TCS has been building up cash to meet its requirements, especially in the case of any mergers and acquisitions, and the excess sum has been shared consistently with shareholders.
Chandrasekaran said that over the years, TCS has been increasing its dividend payments to shareholders.
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