new Delhi. Tata Consultancy Services (TCS) on Monday became the second Indian company to have a market cap of over Rs 10 lakh crore. TCS is the second company after Reliance Industries to achieve a market cap of over 1 million. The shares of the company rose more than 6 percent in early trade on Monday and the market cap of the company crossed the level of 10 lakh crore after the news of the board’s consideration of the share buyback offer on October 7.
The company’s stock jumped 6.18 percent to Rs 2678.80 on the BSE. The company’s stock jumped 6.16 percent to its all-time high at Rs 2679 on the NSE. Due to this rise in the share price, the market capitalization of the company increased to Rs 10,03,012.43 crore during afternoon trade on BSE.
TCS became the second company to achieve a market cap of over Rs 9 lakh crore last month. Currently Reliance Industries has become the most valuable company in India with a market cap of over 15 lakh crores. TCS is the second most valued company in the country as a market cap.
Reliance Industries is the first Indian company to cross the Rs 10 lakh crore market cap. Currently, its market value is Rs 15,02,355.71 lakh crore. TCS said in regulatory information on Sunday night that the Board of Directors will consider a proposal to buy back the equity shares of the company in a meeting to be held on October 7, 2020.
In 2018, TCS bought back shares worth Rs 16,000 crore. At that time, 7.61 crore shares were repurchased at a price of Rs 2100 per share. Jyoti Roy, DVP – Equity Strategist of Angel Broking Ltd, said that most IT companies have surplus cash, which companies can use as a dividend or buyback to please their shareholders.