Wipro Board Okays Rs 15,000-Crore Share Buyback via Tender Offer at Rs 250 Per Share
Detailed Analysis
Wipro Announces Rs 15,000-Crore Share Buyback Programme
Wipro, a leading Bengaluru-based IT services provider, has announced a share buyback programme worth Rs 15,000 crore. The company's board has approved the share buyback of Rs 250 per share, marking the first time in nearly three years that the company has undertaken such an exercise.
The announcement comes after the company's management had reiterated during its third-quarter results that share buybacks would remain a key mechanism for returning excess cash to shareholders. The company's Board of Directors had earlier considered a proposal to buy back equity shares at a meeting scheduled to be held on April 15–16, which was announced on April 9.
Share Buyback Details
| | Current Buyback | Previous Buyback (June 2023) | | --- | --- | --- | | Amount | Rs 15,000 crore | Rs 12,000 crore | | Price per Share | Rs 250 | Rs 445 (not adjusted for 1:1 bonus issue) | | Number of Shares | Not specified | 26.96 crore (4.91% of total equity) |
Wipro's last share buyback was undertaken in June 2023, where the company repurchased shares worth Rs 12,000 crore between June 22 and June 30, acquiring 26.96 crore equity shares, or 4.91 percent of its total equity, at Rs 445 per share.
Investor Takeaway
Wipro's share buyback programme may lead to a reduction in the company's outstanding shares, potentially benefiting existing shareholders.
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