The Board of Transport Corporation of India Ltd (TCI) has given its approval for a significant share buyback proposal. The company intends to repurchase up to 1,562,500 fully paid-up equity shares at a price of ₹960 per share. The aggregate value of this buyback will not exceed ₹150 crore.
Details of the TCI Share Buyback Offer
This proposed buyback represents approximately 2.03 percent of TCI's total paid-up equity share capital. The shares, each with a face value of ₹2, will be acquired through a tender offer route from eligible equity shareholders or beneficial owners who hold shares as of the specified record date. The company has explicitly stated that promoters and members of the promoter group, along with any shareholders prohibited by applicable laws, will be excluded from participating in this offer.
The buyback will be conducted on a proportionate basis, adhering to the Securities and Exchange Board of India's (SEBI) Buy-Back of Securities Regulations, 2018, and the Companies Act, 2013.
Key Dates and Exclusions
TCI has set October 9, 2026, as the crucial record date. This date will determine the entitlement and eligibility of shareholders to participate in the buyback program. The company's promoters and promoter group have already communicated their intention not to participate in the buyback, as conveyed in a letter dated September 29, 2026.
The board or a designated buyback committee retains the flexibility to increase the buyback price and consequently reduce the number of shares to be bought back, provided the overall buyback size of ₹150 crore remains unchanged. Any such modification must occur up to one working day before the record date.
Financial Context and Future Plans
The ₹150 crore buyback size accounts for 6.76 percent of the aggregate of the fully paid-up equity share capital and free reserves, based on TCI's audited standalone financial statements as of March 31, 2026. On a consolidated basis, this figure stands at 6.15 percent. It's important to note that transaction costs and other related expenses are not included in the stated buyback size.
TCI has indicated that a public announcement and a detailed letter of offer, outlining the complete process, timelines, and other pertinent details, will be released in due course.
In a separate development, the board also approved the establishment of a wholly-owned subsidiary in the People's Republic of China. This strategic move aligns with TCI's broader objective to expand its international logistics network across key global trade corridors.
On Tuesday's trading session, shares of Transport Corporation of India were trading nearly flat, showing a slight increase of 0.22 percent at ₹866.75.