In July this year, TCS board has approved a a mega Rs 16,000 crore buyback under the tender route. The buyback — at a price of Rs 2,100 per share — accounts for 38 per cent of the IT major’s cash balance and 18 per cent of net worth.
Buyback is a corporate action in which a company buys back its shares from the existing shareholders usually at a price higher than market price. Infosys completed its Rs 13,000-crore share buyback last year. HCL Technologies completed a share buyback for Rs 4,000 crore in September.
Now, let us see how an employee views this buyback celebration by the corporation bosses.
HR : Hey Dude, Whats up. You know our company going for 2% share buyback.
Employee: So what, Is there any use for employees like us?
HR: Share buy back Is at 2100 rupees. Now share is at 1820. There is a 17% premium.
Employee: So what, Is there any use for Employees like us ?
HR: TCS is recognised as a leader in GDPR services by NelsonHall. TCS hits fresh record high; brokerages betting on strong Q1 earnings growth.
Employee: As a Loyal employee, every TCSer has this grievances in this Buyback and current pride factors.
1. TCS promoters sold shares in 2017
TCS promter holdings of 73.57% in 2017 becomes 71.92% in 2018
“In terms of the SEBI Buyback Regulations, under tender offer route, the promoters have the option to participate in the buyback. We would like to inform you that the Promoter and Promoter Group of the Company have communicated their intention to participate in the proposed buyback,” TCS said in a filing with the BSE.
“During the buyback last year, Tata Sons had made over ₹10,278 crore by tendering over 3.60 crore shares at ₹2,850 per equity share. These shares accounted for 64.2% of the total shares bought back by TCS in 2017’s buyback offer.”
Why promoters are participating in Buyback which is suggested/decided by Board and accepted by board? This means that they are diluting their shareholding further.
2) They stopped ESOPS to majority employees at the bottom of pyramid. Only to top level employees, no one in TCS talks about ESOPS. Attrtion 10-13%,
3) Employee welfare is clearly missing. Lakhs of Employees who brought company to this stage are clearly missed to be rewarded in all iconic News.
Promoters are trying to gain from all this flagship news and forgetting/missing employees welfare who day and night worked to bring the organization to this level.
TCS has reported profit at Rs 7,340 crore for the quarter against Rs 6,904 crore in previous quarter and in same period revenue from operations increased to Rs 34,261 crore from to Rs 32,075 crore.
Employees are provided peanuts in hike.
2-4% hike for majority TCS employees for 8% profit
4-7% hike for majority TCS employees for 20% profit
Top Appraisal is limited to 5-10% in bell curve.
It’s time to reward employees with right salary for their contribution.
Many employees changed organization in market boom but loyal employees who stayed for 10-15 years have to be recognized with hikes than paper printed appreciation letter.
Like padmashree award, is paper printed appreciation letter for 1000-20000 employees bring happiness to employees?
In reality, TCS also holds the record to be first employer in 2014 to do mass layoffs ahead of this achievement. NDLF IT Employees Wing campaigned among employees to resist layoffs and achieved several highlighted landmarks. NDLF requested state/central Government to intervene in Layoffs. If layoffs were not resisted by NDLF and TCS employees, Layoffs would have continued for the sake of Profit margin .
1% TCS leaders are recognized everywhere in this world as faceoff with ESOPS, medals and unimaginable Perks. But 3.94 TCS lakh employees are the ones who do magic work to get projects, do sales, do flexible work, do CSR, resist Layoff, bring glory to lay off leaders by hard work in return, exhibit professionalism, enhance Brand image, revenue generation, do innovation and atlast majority TCS employee stay as saint with 2-3% meagre hike in rental house, travel in rushhour buses and hefty inflated utility bills to face day to today life struggle in India.
Respect TCS employees in the achievement and share Profit made equally to all employees.
– Chennai Citizen