Wipro’s Rs11,000 crore share buyback to begin from 29 November
New Delhi: Information Technology (IT) company Wipro Ltd on Monday said it will open Rs11,000 crore share buyback scheme on 29 November for Rs320 apiece, at 8.6% premium over the current share price.
Wipro has announced buyback over 34.37 crore fully paid-up equity shares of face value Rs2 each of the firm, representing up to 7.06% of the total paid-up equity share capital, from all the fully paid-up equity shareholders/beneficial owners of the shares as on the record date of 15 September 2017, on a proportionate basis, it said in a regulatory filing.
Wipro will process the share buyback through a tender offer route, at a price of Rs320 per share for an aggregate amount of up to Rs11,000 crore, as per the announcement.
“The eligible shareholder can tender equity shares in the buyback only during the tendering period which is from (Wednesday) 29 November 2017 to (Wednesday) 13 December 2017,” the company said in the offer document.
Share buybacks improve earnings per share and return surplus cash to shareholders, while also supporting share price during periods of sluggish market conditions. Eligible shareholders holding and tendering equity shares held in their demat form are not required to submit the tender form to the registrar of the scheme, Karvy Computershare.
The buyback is being managed by JM Financial Institutional Securities. In addition to placing the bid through stock broker, the stock broker of the eligible shareholder holding equity shares in physical form can submit their signed tender form and other documents by 15 December, the document said.
As on 30 September 2017, Wipro had consolidated cash and cash equivalents of Rs5,141.2 crore on its books and investments of Rs33,305.6 crore, totalling Rs38,446.8 crore.
Among Indian IT companies, TCS has already completed a Rs16,000 crore buyback programme earlier this year. The country’s second largest IT firm Infosys will open share buyback worth Rs13,000-crore on 30 November and end on 14 December.
Shares of Wipro closed at Rs294.6 a unit, down by 0.05% compared to previous close, at BSE Monday.