Here is what you should know about the buyback offer
On November 17, Wipro's shareholders in October had approved a proposal to buyback up to 23,75,00,000 equity shares of the company at ₹400 per scrip, for an aggregate amount not exceeding ₹9,500 crore. This represents 4.16% of total paid-up equity share capital of the company as on 30th of September.
As per Business Today report, the proposal has been approved by shareholders a month after its board approved the plan. The voting, which started on October 18 and ended on November 16, witnessed a 99.78 per cent of the votes in favour of the buyback offer.
In fact, promoters of the company supported the proposal fully while 98.73% were approved by public institutional shareholders, and 98.49% by public non-institutional shareholders.
In 2019, the IT major had undertaken a buyback programme of 32.31 crore shares at Rs 325 apiece, amounting to about Rs 10,500 crore. In 2016, the company had announced a buyback worth Rs 11,000 crore in 2017, and Rs 2,500 crore.
Wipro expects revenue from its IT services business to be in the range of $2,022 million to $2,062 million for the December quarter, a sequential growth of 1.5% to 3.5%, as per the company.
The IT firm’s competitor Tata Consultancy Services (TCS) has also proposed a Rs 16,000 crore buyback plan at Rs 3,000 per equity share. The share buyback programme will begin on December 18 and close on January 1, 2021.
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