TCS said the buyback is proposed to be made from the shareholders of the company on a proportionate basis under the tender offer route using the stock exchange mechanism.
firm, is sitting on a cash pile of Rs 35,697 crore or USD 5.25 billion (as on December 31, 2016).
Balakrishnan, along with former colleague TV Mohandas Pai, had sought a USD 1.8 billion buyback in 2014 as well, just as its CEO Vishal Sikka was taking over.
TCS said the buyback is proposed to be made from the shareholders of the company on a proportionate basis under the tender offer route using the stock exchange mechanism.
The buyback is subject to approval of the members by means of a special resolution through a postal ballot, it said.
The public announcement setting out the process, timelines and other requisite details will be released in due course in accordance with the Buyback Regulations.
Following Cognizant's USD 3.4 billion buyback announcement, industry watchers had warned that floodgates for Indian IT firms could open with investors demanding similar action from domestic firms that are sitting on large amounts of unutilised cash on the books.
TCS' outgoing chief N Chandrasekaran had said that the company had received suggestions from investors over the need for certainty on dividend policy along with share buyback to distribute the cash.
While there are reports that Infosys may consider a Rs 12,000 crore share buyback, the company said it will take a decision on buyback at an "appropriate time".
Wipro -- which had a gross cash position at Rs 33,155.3 crore (USD 4.9 billion) as on December 31, 2016 -- completed a buyback worth Rs 2,500 crore last year.
The call for buyback by investors comes at a time when growth in the Indian IT sector has been slowing down amid multiple headwinds like changing technology landscape, global events like Brexit and concerns over tightening of H-1B visa regime by the Donald Trump administration in the US.
(This article has not been edited by DNA's editorial team and is auto-generated from an agency feed.)
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