The board of directors of India’s largest IT services company, Tata Consultancy Services (TCS), will meet on October 7 to consider a share buyback proposal. “The Board of Directors will consider a proposal to buy back shares of the Company, at its meeting to be held on October 7, 2020,” said Tata Consultancy Services (TCS) in a regulatory document. No other details of the buyback plan were disclosed.
TCS’s board is also scheduled to consider its financial results for the September quarter and the declaration of a second interim dividend to equity shareholders at that meeting.
In 2018, the Mumbai-based company had embarked on a share buyback program worth up to ₹16,000 crore. The repurchase, in ₹2,100 per share of capital, had involved up to 7.61 million shares. TCS had announced the mega buyback offer as part of its long-term capital allocation policy of returning excess cash to shareholders.
In a separate filing, TCS said in the EPIC Systems Corporation matter, it would provide ₹Rs 1,218 crore as an exceptional item, in financial results for the three and six months ended September 30, 2020.
In October 2014, EPIC had filed a legal claim against TCS in Western District Court in Madison, Wisconsin, alleging infringement of Epic’s proprietary information.
“On August 20, 2020, the US Court of Appeals, Seventh Circuit, Chicago, rendered a verdict on the appeal filed by TCS, reducing the award for damages. The Court held that the award for punitive damages of $ 280 million is constitutionally excessive, annulled the award for punitive damages and ordered the Court of First Instance to reevaluate the punitive damages, “TCS said in its filing.
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The Court confirmed the award for compensatory damages of $ 140 million, it added.
TCS said it is “legally informed that it has the correct and strongest possible arguments in its favor and that the order and the reduction of damages are not supported by the facts presented during the trial. Compensatory and punitive damages.”
The company said EPIC has also filed a petition requesting a rehearing on the Court of Appeals decision invalidating the award of punitive damages in excess of the amount of compensatory damages.
“The provision on the books for legal claims is being made as a matter of prudence,” he added.
The matter relates to a US grand jury order fining two Tata group companies, TCS and Tata America International Corp, in a trade secret lawsuit filed against them by EPIC in April 2016.
With PTI inputs)
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