Key Points of Wipro Share Buyback:
- Wipro, a Bengaluru-based IT giant, has announced a share buyback program worth Rs 12,000 crore.
- The buyback will be done through the tender route at a price of Rs 445 per share, which represents a premium of 19% against the closing price on the day of the announcement.
- The board of directors approved the buyback of up to 4.91% of the total number of equity shares from shareholders on a proportionate basis.
- The buyback is proposed to be made from the existing shareholders of the company, including those who become shareholders by canceling American Depository Receipts and receiving underlying equity shares.
- The Wipro promoters have indicated their intention to participate in the buyback.
- The buyback is subject to approval by shareholders through a special resolution via a postal ballot.
- Wipro has done at least 4 share buyback programs in the past, with the last two being through the tender route.
- The company will announce the process, record date, timelines, and other details along with the letter of offer at a later date.
Details of Wipro Share Buyback:
Wipro Announces Rs 12,000 Crore Share Buyback Program at Rs 445 per Share
Bengaluru-based IT giant Wipro has announced a Rs 12,000 crore share buyback programme through the tender route at a price of Rs 445 per share. The board of directors approved the buyback of up to 269,662,921 equity shares, which represents 4.91% of the total number of equity shares, from shareholders of the company on a proportionate basis.
Wipro has set the buyback share price at a premium of 19% against the closing price of Rs 374.35 on the day of the announcement. The company has proposed the buyback from its existing shareholders, including those who become shareholders by canceling American Depository Receipts and receiving underlying equity shares, as on the record date on a proportionate basis under the tender offer route.
The Wipro promoters have indicated their intention to participate in the buyback, which is subject to approval by shareholders through a special resolution via a postal ballot. The company will announce the process, record date, timelines, and other details along with the letter of offer at a later date.
In the past, Wipro has done at least 4 share buyback programmes – in 2021, 2019, 2017, and 2016. The last two buybacks were through the tender route. In 2021, the software exporter bought back shares worth Rs 9,500 crore at an offer price of Rs 400 per share, and in 2019, the buyback was worth Rs 10,500 crore at an offer price of Rs 325 per share, according to Prime Database records.
As on April 21, promoters and promoter groups owned a 72.92% stake in Wipro, while FII ownership stood at 6.42% and mutual funds owned a 2.74% stake.
Before the announcement of the share buyback scheme and March quarter results, Wipro stock ended flat at Rs 374.35. Stay tuned for further updates on the process and timeline of Wipro’s share buyback.
About Wipro:
Wipro Limited, a multinational corporation based in India, offers a range of services including information technology, consulting, and business process services.
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