Wipro announces Rs 12,000 crore buyback at 19% premium over share price

Wipro has announced a share buyback worth up to Rs 12,000 crore — equivalent to 4.91 per cent of the IT major's equity. The buyback, subject to shareholders' approval, is at a premium of 19 per cent over the current market price.

The buyback of shares will be carried out through the tender route. | Image: Reuters

Wipro — India's fourth largest IT company by market value — on Thursday announced a share buyback worth up to Rs 12,000 crore through the tender route. The Wipro board gave nod to the buyback, subject to shareholders' approval, of up to 26.96 crore Wipro shares, equivalent to 4.91 per cent of the company's paid-up equity.

Wipro to buy back shares at premium

Wipro's board fixed a price of Rs 445 per share for the buyback — translating to a premium of 18.87 per cent over the current market price.

Wipro shares ended flat at Rs 374.35 apiece on BSE, ahead of the announcement.

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“The Buyback is proposed to be made from the existing shareholders of the Company (including persons who become shareholders by canceling American Depository Receipts and receiving underlying equity shares) as on the record date on a proportionate basis under the tender offer route,” Wipro said in a regulatory filing.

The company said it would share details such as the process, record date and timelines in due time as per share buyback regulations.

What is a share buyback?

A buyback of shares is a type of corporate action, like a dividend, that allows a company to reward its shareholders. Typically, a share buyback boosts the value of the shares remaining in the market, creating value for investors choosing not to tender their shares. Buybacks are conducted in two ways: through the tender route or through the open market. Read more on share buybacks here

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