Wipro has recently announced a buyback offer for around 32.3 crores of its shares for a sum of up to Rs.10,500 crore. The IT services company will be buying back its shares at a price of Rs.325 apiece. This is the company third buyback programme. Wipro had previously announced a buyback offer worth Rs.2,500 crore in the year 2016 and another buyback offer between November and December 2017.
In a regulatory filing, Wipro said that its Board of Directors held a meeting on 16 April 2019 and approved the proposal that was made to buyback up to a total of 32,30,76,923 shares for a total sum of Rs.10,500 crore.
The company added that the buyback will be made from Wipro’s current stakeholders via the tender offer route as per the provisions. Wipro also mentioned that members of the promoter group and the promoter company have expressed their intent to participate in the buyback programme.
As on 31 March 2019, Wipro’s promoters held a 73.85% stake in the company, while Indian banks, financial institutions, and mutual funds held a 6.49% stake. Foreign holding in the company touched 11.74%, while the stake held by Indian corporates, public, and others came up to 7.92%.
This proposal is subject to the company receiving the shareholders’ approval, which will be obtained through a special resolution via a postal ballot. The timelines, process, and other details regarding the postal ballot will be communicated by the company.
Tata Consultancy Services (TCS), one of Wipro’s competitors, has also undertaken 2 buyback programmes in the recent past. Infosys, another market leader, also announced a buyback offer of Rs.13,000 in December 2017, which was followed by a buyback offer worth Rs.8,260 crore in January 2019.
Source: The Times of India