Germany's Deutsche Bank has agreed to sell its IT services division Postbank Systems to India's Tata Consultancy Services, it said on Monday. Postbank Systems has around 1,500 employees, mainly in the German city of Bonn. The sale is part of Deutsche's plan to shed 18,000 staff overall to cut costs and restore profitability.
Indian shares ended higher for a sixth session as buyback plans from Tata Consultancy Services and Wipro powered the main stock index to a level last seen in February. IT stocks were among the top gainers on the blue-chip Nifty 50, leading the Nifty IT index up as much as 5.5% to a record high. Wipro Ltd was the top gainer on the Nifty with a 7.2% rise that also saw the stock touch a record high.
Tata Consultancy Services said on Wednesday it would buy back shares worth up to 160 billion rupees ($2.18 billion), and reported a fall in quarterly profit as it set aside 12.18 billion rupees to cover legal fees related to a U.S. lawsuit. TCS said it would buy back up to 53.3 million shares at 3,000 rupees per share, a 9.7% premium to its stock's closing price on Wednesday. "The timing of the buyback has been partly triggered due to the ongoing feud between Tata and the Mistry group (Shapoorji Pallonji group), with the Mistry group looking to exit its Tata Sons holdings," said Jyoti Roy, an analyst at Angel Broking.