Wipro’s Rs 10,500 crore buyback begins on Aug 14; share price jumps 4%

Wipro will begin its Rs 10,500 crore buyback process on August 14 and close on August 28. The last date for the settlement of bids on the exchange is September 9, the company said Tuesday. The IT company’s board on April 16 had approved a buyback of up to 323 million equity shares, 5.35 per cent of the paid-up equity capital of Rs 325 each for an aggregate amount not exceeding Rs 10,500 crores. The buyback is proposed to be made from the existing shareholders of the company as on the record date on a proportionate basis under the tender offer route. Members of the promoter and promoter group of the company have indicated their intention to participate in the proposed buyback, according to its BSE filing dated April 16.

Today, the shares of Wipro gained 4 per cent after the company announced its buyback programme. At 11:44 AM, Wipro shares were trading at Rs 270.50 per share, nearly two per cent higher than the previous close. Wipro reported a 12.8 per cent rise in its Apr-Jun profits at Rs 2,387.60 crores compared with Rs 2,120.80 crores in the corresponding period of the previous year. However, the quarterly profits were down by 3.86 per cent on a sequential basis. In March the company’s profits stood at Rs 2,483.50 crore.

Wipro received final comments from the Securities and Exchange Board of India or SEBI on July 30, 2019, with respect to the draft letter of offer filed by the company for the buyback. The company will dispatch the letter of offer for the buyback to eligible shareholders appearing on the record date of June 21, 2019, on or before August 6, 2019, it said in an exchange filing.

Wipro’s net sales for April-June stood at Rs 14,716.10 crores, which was lower than Rs 15,006.30 crore during the Jan-Mar quarter. Last year in the same quarter, the It firm had reported net sales of Rs 13,977.70 crore in Apr-Jun, higher than the Q1FY19 numbers.

Wipro Technologies (Wipro Ltd)