Wipro’s Rs11,000 crore share buyback to start from 29 November

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Wipro’s share buyback plan will start on 29 November for Rs320 each, an 8.6% premium over the present share cost

By PTI|Updated: November 20, 2017

Wipro will process the share buyback through a tender deal path, at a rate of Rs320 per share for an aggregate quantity of approximately Rs11,000 crore. Picture: HT

New Delhi: Information Technology (IT) business Wipro Ltd on Monday stated it will open Rs11,000 crore share buyback plan on 29 November for Rs320 each, at 8.6% premium over the existing share cost.

Wipro has actually revealed buyback over 34.37 crore completely paid-up equity shares of stated value Rs2 each of the company, representing as much as 7.06% of the overall paid-up equity share capital, from all the completely paid-up equity shareholders/beneficial owners of the shares as on the record date of 15 September 2017, on an in proportion basis, it stated in a regulative filing.

Wipro will process the share buyback through a tender deal path, at a rate of Rs320 per share for an aggregate quantity of approximately Rs11,000 crore, based on the statement.

“The qualified investor can tender equity shares in the buyback just throughout the tendering duration which is from (Wednesday) 29 November 2017 to (Wednesday) 13 December 2017,” the business stated in the deal file.

Share buybacks enhance profits per share and return surplus money to investors, while likewise supporting share rate throughout durations of slow market conditions. Qualified investors tendering and holding equity shares kept in their demat type are not needed to send the tender kind to the registrar of the plan, Karvy Computershare.

The buyback is being handled by JM Financial Institutional Securities. In addition to putting the quote through stock broker, the stock broker of the qualified investor holding equity shares in physical kind can send their signed tender kind and other files by 15 December, the file stated.

As on 30 September 2017, Wipro had combined money and money equivalents of Rs5,141.2 crore on its books and financial investments of Rs33,305.6 crore, amounting to Rs38,446.8 crore.

Amongst Indian IT business, TCS has actually currently finished a Rs16,000 crore buyback program previously this year. The nation’s second biggest IT firm Infosys will open share buyback worth Rs13,000-crore on 30 November and end on 14 December.

Shares of Wipro closed at Rs294.6 a system, down by 0.05% compared with previous close, at BSE Monday.