Amritsar, NFAPost: Information technology major Tata Consultancy Services will consider a buyback of shares on Wednesday, when the company is scheduled to announce its financial results for the second quarter, the company said in an exchange filing.
TCS is the first tech company to go for a buyback of its shares this financial year. The company had earlier in 2018 undertaken a share buyback programme worth 16,000 crore rupees. As on Mar 2020, the company had cash reserves of 73,993 crore rupees.
Details regarding the possible buyback were not disclosed.
In another filing, TCS said that in the upcoming results it would be providing 1,218 crore rupees as an exceptional item in relation to the EPIC Systems Corporation case.
The case related to allegations of intellectual property theft against TCS is ongoing. The company, however, has made the provisions following a warning by the Securities and Exchanges Board of India earlier this year.
“The provision in the books for legal claim is being made as a matter of prudence,” the company said in the filing.
In March, SEBI had sent a warning letter to TCS for not making adequate disclosures four years ago in relation to a jury verdict against it in the EPIC case.
In its exchange filing, the company also added that in September this year it has filed a petition seeking re-hearing on both compensatory and punitive damages.
EPIC has also filed a petition seeking re-hearing on the decision of the Appeals Court invalidating award of punitive damages exceeding the amount of compensatory damages.