S&P Global Ratings said its ratings and outlook on India's largest information and technology services provider Tata Consultancy Services (TCS; A/Stable/--) are not affected by the company's Indian rupee (INR) 160 billion offer for share repurchases.

We believe TCS will maintain its net cash positive financial position, even if its offer for share repurchase were to be fully subscribed. As of Dec. 31, 2016, TCS has net cash and cash equivalents of INR386 billion.

TCS' operations continue to perform in line with our expectations and support the rating. We believe Indian technology players will continue to grow at a slightly slower pace over the next two to three years due to technological disruptions, but we expect TCS to maintain its leadership position within the overall Indian technology space. The company's modest acquisition spending and minimal capital spending will also leave significant free operating cash flows on its balance sheet.

Our current rating on TCS already factors in a certain level of acquisitions and shareholder distributions by the company. We continue to believe that the company will maintain financial discipline reflective of its credit profile.

We expect Indian IT majors like TCS, Infosys, and Wipro Ltd. to continue to generate significant cash flows despite making modest acquisitions to augment their technological capabilities. We also expect the companies to continue to optimize their shareholder returns through increased distributions.

Shares of the company declined Rs 52.25, or 2.12%, to trade at Rs 2,412.05. The total volume of shares traded was 112,191 at the BSE (3.05 p.m., Wednesday).