Transport Corporation of India Ltd. has announced that it will conduct its first ever buyback of its equity shares worth up to ₹160 crore.

The company intends to repurchase up to 13.33 lakh fully paid-up equity shares, which carry a face value of ₹2 each through this process. The number of shares Transport Corporation of India intends to buyback amounts to 1.72% of the total equity shares of the company.

Buyback price has been fixed as ₹1,200 per share, which is at a 4.4% premium to Friday’s closing price.

The company also intends to buyback the shares through the “tender offer” route, which means that the buyback price will remain fixed and will not change. To know more about the difference between the tender offer and an open market buyback, click here.
Record date for the share buyback as been fixed as September 4, 2024.

This is the first-ever buyback announced by the company.

Transport Corporation of India has never issued bonus shares or split its stock, although it has paid dividends to shareholders.

A share buyback involves the company repurchasing its shares from shareholders. This method is considered tax-efficient, providing a beneficial way of returning cash to investors.

As of the June quarter, promoters of Transport Corporation of India had a 68.94% stake in the company, while India’s Mutual Funds had a 10.79% exposure. Foreign Portfolio investors own a 3% stake.

Shares of Transport Corporation of India Ltd. ended 1.14% lower on Friday at ₹1,149. The stock is up 38% so far this year, while over the last 12 months, the stock has risen 45%.