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Wipro approves Rs 9,500 crore share buyback plan at Rs 400 apiece

Wipro's share buyback plan represents 4.16 per cent of total paid-up equity capital from Wipro shareholders on a proportionate basis via a tender offer

twitter-logoBusinessToday.In | October 13, 2020 | Updated 16:16 IST
Wipro approves Rs 9,500 crore share buyback plan at Rs 400 apiece
Wipro's Q2 profit dipped 3.4% YoY to Rs 2,465.70 cr

The Wipro Board of Directors on Tuesday approved a share buyback proposal under which the company will buy up to 237.5 million equity shares of Rs 2 each. This represents 4.16 per cent of the total paid-up equity capital from the Wipro shareholders on a proportionate basis via a tender offer. The buyback price is Rs 400 ($5.41) per equity share payable in cash for $1.3 billion, Wipro said in a statement to the stock exchanges.

"October 13, 2020, has approved a proposal to buyback up to 23,75,00,000 equity shares (Twenty Three Crores Seventy Five Lakhs only) of the Company for an aggregate amount not exceeding Rs 95,00,00,00,000/- (Rupees Nine Thousand Five Hundred Crores only) (hereinafter referred to as the "Buyback Size"), being 4.16% of the total paid-up equity share capital, at a price of Rs. 400/- (Rupees Four Hundred only) per equity share (hereinafter the "Buyback Price" and such buyback, the "Buyback")," the company statement said.

Wipro had last year also announced a Rs 10,500 crore buyback plan involving 333 million shares at Rs 325 per share. It comprised 3.69% of its total paid-up equity capital.

The IT services company also declared its July-September quarterly result on Tuesday. The company reported 3.40 per cent year-on-year (YoY) decline in its consolidated net profit at Rs 2,465.70 crore for Q2. It reported revenue worth Rs 14,768.1 crore for the quarter. The company's EBIT stood at Rs 2,835.1 crore while its EBIT margin stood at 19.2 per cent.

Wipro's share buyback announcement comes days after its peer Tata Consultancy Services Board cleared a Rs 16,000-crore buyback plan. On October 7, the TCS board approved a share buyback proposal for an aggregate amount not exceeding Rs 16,000 crore. The IT major plans to buyback up to 5.33 crore equity shares. TCS proposed to carry out the buyback at Rs 3,000 per share, which was at 9.6 per cent premium to the closing price of Rs 2,737.40 on October 6.

Meanwhile, the Wipro share closed 0.61 per cent or Rs 2.30 at Rs 375.2 on the National Stock Exchange on Tuesday.

Also read: Wipro Q2 results: Net profit dips 3.4% YoY to Rs 2,465 crore; announces share buyback worth Rs 9,500 crore

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