NewKerala.com

Wipro Announces Massive Rs 15,000 Crore Share Buyback at Rs 250 Per Share

Wipro's Board of Directors has approved a substantial share buyback program worth Rs 15,000 crore. The buyback will be executed at Rs 250 per equity share, which is a notable premium over the current market price. The company plans to repurchase up to 60 crore shares, representing 5.7% of its total equity, with a portion reserved for retail investors. The move is aimed at enhancing shareholder value and reflects confidence in the firm's strong financial performance and cash generation.

Key Points: Wipro Rs 15,000 Crore Buyback at Rs 250 Per Share Approved

  • Rs 15,000 crore buyback approved
  • Rs 250 per share price, a premium
  • 5.7% of total equity to be repurchased
  • Special quota for retail investors
2 min read

Wipro announces Rs 15,000 crore buyback at Rs 250 per share, board approves proposal

Wipro's board approves a Rs 15,000 crore share buyback at Rs 250 per share, a significant premium, to enhance shareholder value.

"We have continued to invest in our clients, capabilities and people and maintained our margins in narrow band. - Aparna Iyer"

Mumbai, April 16

IT company, Wipro Limited, on Thursday announced a share buyback worth Rs 15,000 crore at a price of Rs 250 per equity share, with the proposal approved by its Board of Directors, subject to shareholder approval.

The company stated that the buyback will be conducted through the tender offer route on a proportionate basis, in accordance with the provisions of the Securities and Exchange Board of India (Buy-back of Securities) Regulations, 2018 and the Companies Act, 2013.

According to the company, it plans to repurchase up to 60,00,00,000 equity shares of face value Rs 2 each, representing 5.7 per cent of its total paid-up equity share capital. The aggregate buyback size is capped at Rs 150 billion (approximately USD 1.6 billion).

The buyback price of Rs 250 per share is significantly higher than the company's closing price of Rs 210.26 on Thursday, offering a premium to shareholders. The record date for determining shareholder eligibility for the buyback is yet to be announced.

The company also indicated that a portion of the buyback will be reserved for retail investors, with a retail quota of 9,00,00,000 shares.

Commenting on the development, Aparna Iyer, Chief Financial Officer of Wipro, said the company has maintained strong financial performance and cash generation during the financial year.

"We have continued to invest in our clients, capabilities and people and maintained our margins in narrow band. Our cash conversion continues to remain strong with operating cash flows at 112.6 per cent of net income for FY'26," she said.

"Additionally, in our recently concluded board meeting, the Board of Directors announced buyback of Rs 15,000 crore at a price of Rs 250, subject to shareholder approval," she said.

The buyback is aimed at enhancing shareholder value and reflects the company's confidence in its financial position and future outlook. The proposal will now be placed before shareholders for approval through a postal ballot process.

- ANI

Share this article:

Reader Comments

S
Sarah B
While returning cash to shareholders is good, I hope this doesn't mean they are scaling back on investments for future growth. The IT sector needs constant innovation. The retail quota is a positive step for small investors like me.
R
Rohit P
Bhai, 5.7% of equity share capital is a significant amount. This should boost the EPS for remaining shareholders. Good to see Indian IT majors using their strong cash reserves wisely. Let's see if other companies follow suit.
P
Priyanka N
The premium is nearly 19%! That's a very attractive offer. However, as a respectful criticism, I wish companies would also focus more on consistent dividend payouts alongside such one-time buybacks. It provides regular income for retirees.
M
Michael C
Strong operating cash flows at 112.6% of net income is impressive. This buyback is a clear signal that Wipro believes its shares are undervalued. A confident move in the current market environment.
K
Kavya N
The retail quota of 9 crore shares is a welcome detail. Often, small shareholders get left out in such large corporate actions. Hope the process is smooth and transparent. 👍

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50