India’s largest IT providers agency Tata Consultancy Services’ board will meet later this week to think about 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) mentioned in a regulatory submitting on Sunday evening. No different particulars of the buyback plan have been disclosed.
The board can also be slated to think about its monetary outcomes for the September quarter and declaration of a second interim dividend to the fairness shareholders at that assembly.
In 2018, the Mumbai-based firm had undertaken a share buyback programme price as much as Rs 16,000 crore.
The buyback, at Rs 2,100 per fairness share, had entailed as much as 7.61 crore shares. In 2017 too, TCS had undertaken an analogous share buy programme.
TCS had introduced the mega buyback provide as a part of its long-term capital allocation coverage of returning extra money to shareholders.
In a separate submitting, TCS mentioned within the EPIC Systems Corporation matter, it might be offering Rs 1,218 crore as an distinctive merchandise, within the monetary outcomes for the three and 6 months ended September 30, 2020.
In October 2014, EPIC had filed a authorized declare towards TCS within the courtroom of Western District Madison, Wisconsin alleging infringement of Epic’s proprietary data.
“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 USD 280 million is constitutionally excessive, vacated the punitive damages award and directed the Trial Court to reassess the punitive damages,” TCS mentioned in its submitting.
The Court upheld the compensatory damages award of USD 140 million, it added.
“TCS is legally advised that it has the correct and the strongest possible arguments in its favour and the Order and reduced damages are not supported by facts presented during the Trial. In September 2020, TCS has filed petition seeking re-hearing on both compensatory and punitive damages,” TCS mentioned.
The firm mentioned EPIC has additionally filed a petition in search of re-hearing on the choice of the Appeals Court invalidating award of punitive damages exceeding the quantity of compensatory damages.
“The provision in the books for the legal claim is being made as a matter of prudence,” it added.
The matter pertains to a US grand jury order that slapped two Tata group firms — TCS and Tata America International Corp — with a USD 940 million advantageous in a commerce secret lawsuit filed towards them by EPIC in April 2016.
On April 16, 2016, TCS made a disclosure to the inventory exchanges concerning a US courtroom verdict associated to an mental property rights case with EPIC Systems.
On October 1, 2017, TCS mentioned the courtroom considerably lowered the compensatory and punitive damages of USD 940 million to USD 420 million.
In May this yr, Securities and Exchange Board of India (SEBI) had warned TCS to watch out in coping with disclosure of fabric data to traders after the watchdog discovered that the IT main didn’t prominently show the extent of damages associated to a case within the US.
The regulator has additionally requested the corporate to make sure that disclosures present enough, correct, specific and well timed data to the traders.
(With PTI inputs)