Tata Consultancy Services to finalise buyback policy

New Delhi: India’s largest software services firm TCS will articulate in more “explicit” terms its capital allocation policy in the next few months for its shareholders. Marketmen have been pushing for bringing in a more structured capital allocation strategy for TCS, a crown jewel in the $103-billion Tata Group. “There has been a lot of talk about this. We will be articulating our policy (on capital allocation) in more explicit terms...,” TCS’ newly appointed CEO Rajesh Gopinathan said.

“We will articulate that in next few months partially, we should articulate some more formal policy in the next quarter or so,” he said. The firm has maintained a “consistent track record of very systematic and generous distribution” of capital in the past, he added. Tata Sons chairman N. Chandrasekaran had last week said TCS had received suggestions from investors over the need for certainty on dividend policy along with share buyback to distribute large amount of cash to its shareholders.