TCS has delivered a double whammy of disappointing results and a share buyback offer that was inadequate in terms of both the size and the price expected by the markets.

The board of TCS on Wednesday said it would repurchase shares for an aggregate amount of up to Rs 17,000 crore.

While the buyback size represents 1.12 per cent of the total paid-up equity share capital, it will be done for Rs 4,150 per share.

Markets were expecting the buyback size of Rs 18,000-22,000 crore and a price of Rs 4,300-4500 per share.

Market circles indicated the shares may open lower on Thursday, given the uninspiring results and the buyback size.

“TCS buyback price was below expectations and even below the last buyback price. US dollar revenue declined for the first time in many quarters while the second quarter EBIT margin was better than expectations. The TCS board approved the buyback of Rs 17,000 crore for Rs 4,150 per equity share against Street expectations of Rs 4,300-Rs 4,500 per share,” Prashanth Tapse, senior VP (research), Mehta Equities, said.

“Reacting to the Q2 numbers and buyback announcement, there is a high probability of neutral to negative opening for the TCS stock tomorrow (Thursday) morning,’’ Tapse said.

The size is lower than the buyback programme of 2022: TCS bought Rs 18,000 crore from its shareholders.