Tata Consultancy Service Ltd. (TCS) is an IT sector market leader in India and is one of the largest IT MNCs in the world. The company specialises in IT outsourcing and consultancy services and has a repute for giving the best solutions to any client. It has handled many projects from the government and private sector since its inception. The exponential growth of the company in the last two decades was evident when it crossed the benchmark of 100-Billion Dollars in market capitalization in 2018. The company was the first in the Indian IT sector to cross this milestone and the second overall in the Indian market.

During the tough times of the COVID pandemic incited lockdown, the company never failed to impress even while working from home. The numbers kept on increasing and in March 2020, it beat Reliance to become India’s most valued company with a market capitalization valuing Rs. 6959.73 crores. In September 2020, TCS became the first IT company and the second Indian firm after Reliance Industries Limited (RIL) to reach Rs. market capitalization of 9 trillion. In the following month, it became the world’s most valuable IT firm beating Accenture.

Growth in shares of TCS

The growth potential of the company is indicated by the following calculation regarding shares brought by a TCS investor in 2004 and its value in 2021. 

  • Suppose you bought 500 stocks of TCS in September 2004 with a value of Rs. 123.95 per share. Total amount invested = 61975
  • In 2006, TCS issued bonus shares in the ratio 1:1.

This meant for one share owned by the investor, TCS gave 1 bonus share. So, the net number of shares for the investor became 1000. 

  • In 2009, the company again issued the bonus shares in the ratio 1:1. Taking the total number to 2000.
  • In 2018, the company issued its most recent bonus shares in the ratio 1:1 taking the total number of shares for the company to 4000.
  • Now, the price of a single TCS share, as of January 2020, is Rs. 3,111.35. Thus, the total value of shares as of January 2021 became,

Rs. 3111.35 x 4,000 shares = Rs. 1,24,45,400 (One Crore Twenty Four Lakhs Forty-Five Thousand Four Hundred)

So, we can see that just Rs. 61 thousand invested in TCS in 2004 would have grown to more than a crore rupees in January 2021.  And this price is only the share growth. It doesn’t constitute the dividends paid by TCS on the stocks. If we add the amount for dividend then the returns will be even bigger. Hence, we recommend that if you have any old share of TCS lying dormant with IEPF then you must make claims for it as its value by today’s terms would be huge.

Source: https://www.tcs.com/dividend-payment-details

https://economictimes.indiatimes.com/tata-consultancy-services-ltd/infocompanybonus/companyid-8345.cms 

https://in.investing.com/equities/tata-consultancy-services-historical-data?interval_sec=monthly 

Dividend Shared by TCS Since 2004

The following table will give detailed information on dividends released by TCS in the last decade.

Announcement Date Effective Date Dividend Type Dividend (%) Remarks
31/12/2020 14/01/2021 Interim 600% Rs.6.0000 per share (600%) Third Interim Dividend
30/09/2020 14/10/2020 Interim 1200% Rs.12.0000 per share (1200%) Second Interim Dividend
30/06/2020 16/07/2020 Interim 500% Rs.5.0000 per share (500%) Interim Dividend
16/04/2020 03/06/2020 Interim 600% Rs.6.0000 per share (600%) Final Dividend
11/03/2020 19/03/2020 Interim 1200% Rs.12.0000 per share (1200%) Interim Dividend
10/01/2020 23/01/2020 Interim 500% Rs.5.0000 per share (500%) Third Interim Dividend
10/10/2019 17/10/2019 Special 4000% Rs.40.0000 per share (4000%) Special Dividend
30/09/2019 17/10/2019 Interim 500% Rs.5.0000 per share (500%) Second Interim Dividend
28/06/2019 16/07/2019 Interim 500% Rs.5.0000 per share (500%) Interim Dividend
12/04/2019 04/06/2019 Final 1800% Rs.18.0000 per share (1800%) Final Dividend
31/12/2018 17/01/2019 Interim 0% Third Interim Dividend
11/10/2018 23/10/2018 Interim 400% Rs.4.0000 per share (400%) Second Interim Dividend.
29/06/2018 17/07/2018 Interim 400% Rs.4.0000 per share (400%) Interim Dividend
19/04/2018 31/05/2018 Final 2900% Rs.29.0000 per share (2900%) Final Dividend
11/01/2018 22/01/2018 Interim 700% Rs.7.0000 per share (700%) Third Interim Dividend
12/10/2017 25/10/2017 Interim 700% Rs.7.0000 per share (700%) Second Interim Dividend.
13/07/2017 24/07/2017 Interim 700% Rs.7.0000 per share (700%) Interim
24/04/2017 13/06/2017 Final 2750% Rs.27.5000 per share (2750%) Final Dividend
12/01/2017 23/01/2017 Interim 650% Rs.6.5000 per
13/10/2016 24/10/2016 Interim 650% Rs.6.5000 per share (650%) Second Interim Dividend
14/07/2016 25/07/2016 Interim 650% Rs.6.5000 per share (650%) Interim Dividend
18/04/2016 06/06/2016 Final 2700% Rs.27.0000 per share (2700%) Final Dividend
12/01/2016 21/01/2016 Interim 550% Rs.5.5000 per share (550%) Third Interim Dividend
13/10/2015 23/10/2015 Interim 550% Rs.5.5000 per share (550%) Second Interim Dividend
08/07/2015 20/07/2015 Interim 550% Rs.5.5000 per share (550%) Interim Dividend
16/04/2015 05/06/2015 Final 2400% Rs.24.0000 per share (2400%) Final Dividend
15/01/2015 27/01/2015 Interim 500% Rs.5.0000 per share (500%) Third Interim Dividend
16/10/2014 29/10/2014 Interim 500% Rs.5.0000 per share (500%) Second Interim Dividend
17/07/2014 28/07/2014 Special 4000% Rs.40.0000 per share (4000%) Special Dividend
16/07/2014 28/07/2014 Interim 500% Rs.5.0000 per share (500%) Interim Dividend
16/04/2014 06/06/2014 Final 2000% Rs.20.0000 per share (2000%) Final Dividend
16/01/2014 27/01/2014 Interim 400% Rs.4.0000 per share (400%) Third Interim Dividend
15/10/2013 25/10/2013 Interim 400% Rs.4.0000 per share (400%) Second Interim Dividend
18/07/2013 29/07/2013 Interim 400% Rs.4.0000 per share (400%) Interim Dividend
17/04/2013 06/06/2013 Final 1300% Rs.13.0000 per share (1300%) Final Dividend
14/01/2013 23/01/2013 Interim 300% Rs.3.0000 per share (300%) Third Interim Dividend
19/10/2012 31/10/2012 Interim 300% Rs.3.00 per share (300%) Second Interim Dividend
12/07/2012 23/07/2012 Interim 300% Rs.3.00 per share (300%) Interim Dividend
23/04/2012 07/06/2012 Final 1600% Rs. 8/- per share (800%) Final Dividend & Rs. 8/- per share (800%) Special Dividend
17/01/2012 25/01/2012 Interim 300% Third Interim Dividend
17/10/2011 25/10/2011 Interim 300% Second Interim Dividend
14/07/2011 28/07/2011 Interim 300%
21/04/2011 08/06/2011 Final 800% Rs.8.00 per share (800%) Final Dividend
17/01/2011 27/01/2011 Interim 200% Third Interim Dividend
21/10/2010 01/11/2010 Interim 200% Second Interim Dividend
15/07/2010 29/07/2010 Interim 200%
19/04/2010 15/06/2010 Final 1400% Rs.10.00 per share (1000%) Special Dividend & Rs.4.00 per share (400%) Final Dividend
15/01/2010 27/01/2010 Interim 200% Third Interim Dividend
20/10/2009 28/10/2009 Interim 200% Second Interim Dividend

Data of Unclaimed Dividend & Shares of TCS

The following tables have been extracted from the data released by TCS in the form of Annual Reports. From the following tables, we can easily understand the number of dividends passed by TCS to IEPF and the dividends transferred to its unclaimed dividend account.

  • Unclaimed Stock Transferred to the IEPF

The following unpaid dividend and shares have been transferred to IEPF by TCS according to its financial reports.

Financial Year Amount of Unclaimed Dividend Number of Unclaimed Shares
2011-2012 1,73,50,000 35,251
2012-2013 73,20,000 19,535
Total 2,46,70,000 54,786

Source: https://www.tcs.com/content/dam/tcs/investor-relations/financial-statements/2019-20/ar/annual-report-2019-2020.pdf

Data of TCS Stocks to be transferred to the IEPF

The following tables give the year wise release date of dividends with the last date to claim it from the company before it gets transferred to the IEPF fund.

Financial Year Date of Declaration Last Date of Claiming Unpaid Dividend
2012-2013 June 28, 2013 July 28, 2020
2013-2014 July 18, 2013 August 18, 2020
October 15, 2013 November 14, 2020
January 16, 2014 February 16, 2021
June 27, 2014 July 27, 2021
2014-2015 July 17, 2014 August 18, 2021
October 16, 2014 November 16, 2021
January 15, 2015 February 15, 2022
June 30, 2015 July 30, 2022
2015-2016 July 9, 2015 August 9, 2022
October 13, 2015 November 12, 2022
January 12, 2016 February 11, 2023
June 17, 2016 July 17, 2023
2016-2017 July 14, 2016 August 15, 2023
October 13, 2016 November 16, 2023
January 12, 2017 February 12, 2024
June 16, 2017 July 16, 2024
2017-2018 July 13, 2017 August 13, 2024
October 12, 2017 November 12, 2024
January 11, 2018 February 10, 2025
June 15, 2018 July 15, 2025
2018-2019 July 10, 2018 August 9, 2025
October 11, 2018 November 10, 2025
January 10, 2019 February 9, 2026
June 17, 2019 July 13, 2026
2019-2020 July 9, 2019 August 8, 2026
October 10, 2019 November 9, 2026
January 17, 2020 February 16, 2027
June 10, 2020 July 9, 2027

After the mentioned due dates are given after a gap of 7 years, TCS will transfer the dividends with shares to IEPF.  

  • An investor can check the status of their dividends and invested money declared by TCS, from https://www.tcs.com/unclaimed-dividend-details-from-february-10-2014-to-january-31-2020
  • For more information regarding TCS, visit: https://www.tcs.com/content/dam/tcs/investor-relations/financial-statements/2019-20/ar/annual-report-2019-2020.pdf

Understanding Investor Education and Protection Fund

IEPF was formed by the Indian government to educate investors about the consequences of unclaimed dividends. It is also a medium for investors to claim their long-lost invested money. Earlier the dormant shares or associated money used to lie with companies for years without no one to claim them. there was no provision for companies on how long they can hold these unclaimed stocks. Some companies used to transfer the money to public welfare funds of government but there was no timeline for the said transfer. IEPF streamlined this process and set a timeline of 7 years for companies after which they must transfer unclaimed stocks and dividends to this fund, from where investors after any number of years can claim their money.

Procedure to Claim Ole TCS Shares from IEPF Authority

1: Contact TSR Darashaw Ltd.

The company has appointed TSR Darashaw Ltd. as its Transfer Agent which will give complete information on the status of invested money of the shareholder. If the dividends are transferred to IEPF then the investor can move on to the following steps.

2: Download IEPF 5 Form

The shareholder must visit the following application link of IEPF http://www.iepf.gov.in/IEPF/refund.html, and follow the instruction to make an online application.

3: Physical Application

After application submission, the investor must send the filled form with all the necessary documents for proving ownership of shares to the TCS authority.

4: Verification by TCS

The nodal officer of TCS will verify the documents and form for ownership from the company’s documents and then send the verification report to the IEPF Authority.

5: Comment by the IEPF Authority

The IEPF Authority will make the decision to pass the claim based on the verification report, documents, and application form. Based on that IEPF authority can either,

  • Approve the claim and initiate the refund.
  • Ask the claimant to resubmit some or all documents if there is some discrepancy.
  • Reject the claim form.

6: What to do next?

  • If the authority asks the claimant to submit any additional documents, then he must share the documents with the Nodal officer of TCS in his office from where the officer will send the documents to the authority.
  • In case the claim is rejected, the claimant will have to repeat the whole process by making a fresh claim.

Visit the following website for more info: https://www.tcs.com/content/dam/tcs/pdf/discover-tcs/investor-relations/faq/steps-to-claim-dividend-shares-iepf.pdf

Why do You Need Legal Help?

As mentioned in the above sections, filing a claim to the IEPF requires filing an error-free form with all the necessary documents that could be asked by the company. Thus, a claimant should avoid the hassle by appointing a legal consultancy firm to fill the form on his behalf and do the remaining liaising work with the Nodal officer and IEPF regarding any documents or any discrepancy. The legal consultancy firm will make the job easy and the claimant won’t have to worry about their form being rejected due to an error in filing. The legal firm can also help the claimant in proving their ownership in case they inherit the shares from any elderly who has not mentioned the shares in their will.

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