16.3 C
California
Tuesday, October 20, 2020

Wipro Board Approves Up to Rs 9,500-Crore Buyback Plan Week After TCS Announcement

Representative image.

In a regulatory filing, Wipro said its board of directors has approved a buyback proposal for purchase of up to 23.75 crore equity shares at Rs 400 per share and aggregates to an amount of up to Rs 9,500 crore. This is 4.16 per cent of the paid-up equity share capital of the company as on September 30, 2020, it added.

  • PTI
  • Last Updated: October 13, 2020, 5:45 PM IST
  • FOLLOW US ON:

IT services major Wipro on Tuesday announced an up to Rs 9,500 crore buyback plan at Rs 400 per equity share. The announcement comes a week after its rival Tata Consultancy Services (TCS) announced a mega Rs 16,000-crore buyback plan at Rs 3,000 per equity share.

In a regulatory filing, Wipro said its board of directors has approved a buyback proposal for purchase of up to 23.75 crore equity shares at Rs 400 per share and aggregates to an amount of up to Rs 9,500 crore. This is 4.16 per cent of the paid-up equity share capital of the company as on September 30, 2020, it added.

At Rs 400 apiece, the buyback is 6.4 per cent higher than Tuesday’s closing price of Rs 375.5 on the BSE. In a statement, Wipro Chief Financial Officer Jatin Dalal said the company’s free cash flows as a percentage of net income for the first half was at 160.7 per cent of net income.

“The announcement to buyback equity shares is part of our philosophy to deliver consistent returns to shareholders,” he added. Last year, Wipro had undertaken a buyback programme of 32.31 crore shares at Rs 325 apiece, aggregating to about Rs 10,500 crore.

Wipro had previously announced a buyback worth Rs 11,000 crore in 2017, and Rs 2,500 crore in the year 2016. The regulatory filing on Tuesday said members of the promoter and promoter group of the company have indicated their intention to participate in the proposed buyback. Promoter and promoter group held 74.02 per cent shareholding as on October 9, 2020.

The proposed buyback is subject to approval of shareholders by way of a special resolution through a postal ballot, it added. The process, timelines and other requisite details with regard to the postal ballot will be communicated in due course, it said. “The company has formed a committee to oversee and implement the buyback and to do all such acts, deeds, matters and things as it may, in its absolute discretion, deem necessary, expedient, usual or proper in connection with the proposed buyback,” it said.

.

Speak Your Mind

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Get in Touch

211FansLike
34FollowersFollow
41FollowersFollow

Recommend for You

AP Explains: The Promise Of 5G Wireless – Speed, Hype, Risk

FILE - In this Sept. 17, 2020 file photo, visitors wearing mask to protect from the coronavirus walk past a 5G sign at the...

‘This is insanity’: Doctors slam Trump’s drive to greet supporters outside Walter Reed hospital

US President Trump waves from the back of a car outside of Walter Reed Medical Center in Bethesda, Maryland on Ocotber 4, 2020.Alex Edelman...

Exclusive: Argentina First Country To Approve GMO Wheat

BUENOS AIRES: Argentina has approved HB4 drought-resistant GMO wheat by biotechnology firm Bioceres SA, the company and the government said on Wednesday, making it...

Indian Economy to Contract by Massive 10.3% in 2020, to Bounce Back Next Year: IMF

The Indian economy, severely hit by the coronavirus pandemic, is...

Biden Blames Trump ‘Liberate Michigan’ Tweet For Whitmer Kidnapping Attempt

Topline Former Vice President Joe Biden on Thursday pointed to a tweet from President Trump egging on anti-lockdown protesters in Michigan in April as...

Related Articles

10 Signs Ordinary Americans Need Congress To Pass More...

A speedy round of extra stimulus funds, as the economy continues to recoil due...

Upholding A Protectionist Law In Utah Would Break The...

Getty Jeremy Barnes lives in Franklin, Idaho. The...

Cocktails To Go: Virus Temporarily Relaxes Liquor Laws

DETROIT: The coronavirus is shaking up America’s liquor laws. At least 33 states and...

Exclusive: Here’s How You Can Order Burgers By Matthew...

LOS ANGELES, CA - JANUARY 10: Matthew McConaughey attends...