The board of directors of Transport Corporation of India Ltd. (TCI) has approved a share buyback proposal worth ₹150 crore at ₹960 per share, marking a significant development in the company's capital allocation strategy. As per Live Mint, the board meeting held on September 29, 2026 has now concluded with this major decision. The buyback proposal, which was previously under consideration, has now been formally approved by the board of directors. This approval comes after the company disclosed that its board would consider and approve a share buyback proposal during their meeting, with the board meeting considering and approving the proposal for buyback of fully paid-up equity shares of the company. Following the board approval, TCI shares gained nearly 1.5% on Tuesday, with the stock hitting an intraday high of ₹877.40 as of 02:45 PM, while the Nifty 50 was trading 0.49% lower at 22,669.45. The buyback price represents an 11% premium over current market levels, demonstrating the company's commitment to enhancing shareholder value through this capital return initiative.
The approved buyback of ₹150 crore at ₹960 per share represents a significant capital return to shareholders. Based on TCI's financial position, a buyback of up to 10% could amount to around ₹256 crore, while a 25% buyback could be worth approximately ₹641 crore. As reported by CNBC TV18, the company had ₹317 crore in cash and current financial assets, providing resources against which the potential buyback could be considered. The buyback size represents 6.76% and 6.15% of the aggregate of the company's fully paid-up equity share capital and free reserves, based on its latest audited standalone financial statements for FY26. The board approval has triggered a strong market response, with shares surging 15% on Friday, reaching an intraday high of ₹955 before settling at ₹911, up 9.30% as of 2:28 PM. The stock witnessed exceptional trading activity with trading volumes surpassing 47.91 lakh equity shares, marking an 80.35 times increase in trading activity compared to the average volume of 43,196 equity shares in the past week. The latest trading session shows continued positive momentum with the stock delivering a 6.72% return over one week.
The stock witnessed exceptional trading activity on Friday, with trading volumes surpassing 47.91 lakh equity shares, marking an 80.35 times increase in trading activity compared to the average volume of 43,196 equity shares in the past week. According to NSE data, high-volume momentum triggered the intraday gains, with trading volumes increasing 102.23 times compared to an average of 33,949 equity shares over the last two weeks. After touching the day's high, TCI shares retracted some gains but were still trading 10% higher at ₹917.5 on September 25. The company's market capitalisation stood at ₹6,403.49 crore as of the trading session on Friday, September 25, 2026. Latest data shows the stock is 26.13% down from its 52-week high of ₹1,242 and 15.12% up from its 52-week low of ₹797. The stock's performance shows mixed signals with a 19.93% decline year-to-date but positive longer-term returns of 10.77% over three years and 108.39% over five years.
The approved buyback covers up to 15.62 lakh shares, representing 2.03% of TCI's paid-up equity share capital, as per CNBC TV18. The company has fixed Friday, October 9, 2026 as the record date to determine shareholder eligibility, with the buyback open to eligible shareholders on a proportionate basis. Notably, promoters and members of the promoter group have expressed their intention not to participate in the buyback, with the board constituting a buyback committee to oversee the process. The committee retains flexibility to increase the buyback price and correspondingly reduce the number of shares to be bought back, provided the overall buyback size remains unchanged. The public announcement and letter of offer containing detailed process and timelines will be issued in due course. As of June 30, 2026, the promoter and promoter group held a 68.86% stake in the company, highlighting the significant promoter participation in the buyback decision. The buyback will be carried out through the tender offer route on a proportionate basis, available to all eligible equity shareholders and beneficial owners as of the record date, except promoters, promoter group members and any other shareholders specifically prohibited under applicable laws.
Separately, the board has approved the incorporation of a wholly owned subsidiary in China with an initial financial commitment of up to $2 million, as reported by CNBC TV18. The proposed entity will undertake logistics and supply-chain activities and is intended to support an integrated India-China-Far East logistics corridor, with operations initially proposed in a Shanghai or Shenzhen free trade zone. According to Live Mint, the company said the proposed WOS, upon incorporation, will be a wholly owned subsidiary of the company, which will be its holding company. The overall financial commitment of the company in relation to the proposed WOS is up to USD 2 million or its equivalent in any other freely convertible foreign currency, which may be made in one or more tranches depending upon business requirements and in accordance with applicable laws. Upon incorporation, the proposed entity will be a wholly owned subsidiary of the company, and accordingly, the company will hold 100% of the equity share capital and control of the proposed entity. Following its Q1 results, TCI had told CNBC-TV18 that it was targeting 10-12% revenue growth in FY27. The company's net worth stood at around ₹2,556 crore as of March 2026, while the company had ₹317 crore in cash and current financial assets. The move aligns with the company's strategy to expand its international logistics network across key global trade corridors, with China being one of the world's largest manufacturing and trade hubs.
