Home / Markets / Stock Markets /  Wipro's 9,500-crore share buyback offer to open on 29 December

Wipro Ltd on Tuesday said its share buyback programme of up to 9,500 crore, will start on 29 December and close on 11 January, 2021. Wipro shareholders in October had approved a proposal to buy back up to 23,75,00,000 equity shares of the company at 400 per scrip, for an aggregate amount not exceeding 9,500 crore. This represents 4.16% of total paid-up equity share capital of the company as on 30 September.

The IT major will send the Letter of Offer to the investors on or before 26 December, 2020. The record date for this purpose is 11 December, 2020, Wipro said in a regulatory filing.

The last date of settlement of bids on the stock exchanges is 20 January, 2021.

Another IT services firm, Tata Consultancy Services (TCS) has also proposed a mega 16,000-crore buyback plan at 3,000 per equity share. In 2017 and 2018, TCS had undertaken buyback offers of similar sizes.

Wipro had last year announced a share buyback of up to 33.3 crore shares at 325 per share, aggregating 10,500 crore, and comprising 3.69% of its total paid-up equity capital. The IT major had previously announced a buyback worth 11,000 crore in 2017, and 2,500 crore in the year 2016.

Wipro expects revenue from its IT services business to be in the range of $2,022 million to $2,062 million for the December quarter, a sequential growth of 1.5% to 3.5%, the company earlier said.

Wipro Ltd on Tuesday announced a strategic digital and IT partnership deal with German wholesaler METRO AG. The estimated deal value for the duration of the first 5 years is approximately $700 million. With the intention to extend up to four additional years, it can be a potential spend of up to $1 billion, Wipro said. As part of the deal, more than 1,300 employees across the IT units of the wholesaler from Germany, Romania and India will transfer to Wipro. The deal is expected to generate revenue of over 1,000 crore per year for the Bengaluru-based firm.

“We are at a stage where we want to focus on the activities that are going to give us the strongest possible competitive advantage and to do that, we need to be confident in the digital infrastructure that underpins our growth," said Timo Salzsieder, CIO, METRO AG.

Thierry Delaporte, CEO and MD, Wipro said, “Like us, METRO AG is focused on leveraging digital transformation for competitive advantage. Wipro’s role is to make that transformation efficient and effective."

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