This case discusses the share buyback announcement by Tata Consultancy Services (TCS) during February 2017 when its Chairman N Chandrasekaran was appointed as the Chairman of Tata Sons after Tata Sons had ousted its former Chairman, Cyrus Mistry. The case highlights the reasons why companies may opt for share buyback, what is the role of the tax laws of the country towards these decisions and whether such decisions are beneficial for the company, the investors or the promoters. The case considers impact of aspects such as employee training and investments in innovation on the buyback decisions and also brings an international perspective with regard to how buybacks have fared in the US during the past decade.
Implied cost of capital investment strategies: evidence from international stock markets
