Wipro shares rise nearly 3% after shareholders approve buyback proposal
Wipro shares closed 2.54% higher at Rs299.05 on BSE
New Delhi: Shares of Wipro on Thursday rose by nearly 3% after the company said its shareholders have approved its Rs11,000-crore buyback proposal.
The stock ended 2.54% higher at ₹ 99.05 on BSE. During the day, it went up by 2.86% to ₹ 00—its 52-week high. At NSE, shares of the company gained 2.71% to close at ₹ 299.10.
The stock was the biggest gainer among the bluechips on both the key indices. The company’s market valuation also went up by ₹ 3,616.23 crore to ₹ 1,45,537.23 crore.
In terms of equity volume, 7.79 lakh shares of the company were traded on BSE and over one crore shares changed hands on NSE during the day. The Bengaluru-based company has fixed 15 September as the record date for the buyback offer.
It had said last month that it will purchase up to 343.75 million shares at ₹ 320 per scrip. The total size of the offer will be up to ₹ 1,000 crore.
“The aforesaid special resolution has been passed through postal ballot and e-voting by members by requisite majority," Wipro said in a filing to the BSE yesterday.
The voting, which ended on 28 August saw 99.68% of the votes being cast in favour of the buyback offer. Share buybacks improve earnings per share and return surplus cash to shareholders while also supporting share price during periods of sluggish market conditions.
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