Tech giant Tata Consultancy Services (TCS) has become the second Indian company to clock the Rs 8-lakh crore market valuation following a surge in its share price on Tuesday. Mukesh Ambani-led Reliance Industries had touched the Rs 8-lakh crore mark on August 23, becoming the first Indian company to do so.
During the intra-day trading, the TCS share surged 2 per cent to a record high of Rs 2,097 on the Bombay Stock Exchange (BSE), taking its m-cap to Rs 8,01,550.50 crore.
TCS was the first Indian company to cross the Rs 7-lakh crore market cap in June after it crossed the $100 billion milestone in April. Its market valuation had gone past the Rs 6-lakh crore level earlier this year, making it the second company to achieve the milestone after Reliance Industries.
Its stock has gained around 54.6 per cent this year. The stock has seen a continuous rise due to share buyback offer worth over Rs 16,000 crore by the company from September 6 to September 21. Under the offer, TCS has decided to buyback total 76.19 million shares for Rs 2,100 a piece.
While RIL is the first homegrown major to achieve this feat, the aggregate market capitalisation of 15 Tata Group companies comes out to be around Rs 11.32-lakh crore. Also, the collective valuation of Deepak Parekh-led financial services company, HDFC Group, had also crossed Rs 10-lakh crore recently.
Companies offer share buyback when they want to boost the overall share value or to reduce the number of shares in the market or to stop other shareholders from taking control of the company. The process also improves shareholders' earning per share.
In its quarterly results for the quarter ending June, TCS' net profit rose 6.3 per cent sequentially while 23.5 per cent on the Y-o-Y basis to Rs 7,340 crore.
(Edited by Manoj Sharma)