Wipro Board Gives Nod For Share Buyback Of Rs 12,000 Cr At 19% Premium

Wipro Board Gives Nod For Share Buyback Of Rs 12,000 Cr At 19% Premium

Wipro’s Board of Directors has approved the purchase of equity shares worth Rs 12,000 crore from shareholders. One approach for businesses to reward their shareholders is through share buybacks.

The company intends to present an offer to purchase up to 26,96,62,921 equity shares, or 4.91 per cent of all equity shares, at a price of Rs 445 per equity share.

The buyback price is at a premium of nearly 19 per cent to the last traded price of Wipro. As per reports, members of the promoter and promoter group of the company will also be participating in the proposed buyback.

The amount of the buyback excludes transaction costs, such as brokerage, applicable taxes like the buyback tax, securities transaction tax, GST, and stamp duty, as well as any costs incurred or anticipated to be incurred for the buyback, such as filing fees to be paid to the Securities and Exchange Board of India, advisor/legal fees, costs associated with publishing public announcements, and other incidental and related costs.

Wipro stated that the proposed repurchase is dependent on shareholder approval via a special resolution passed by mail vote. The public notice and the letter of offer, which will be published in accordance with the Buyback Regulations, will include the procedure, record date, timescales, and other specifics.

Though at a premium, the buyback price is noticeably lower than the 52-week high of Rs 530. As a result, the repurchase won’t be a beneficial way for investors who purchased the company at its peak to exit.

The news saw Wipro’s share shooting up and on Friday, it gained 2.75 per cent and closed at Rs 384.70 on NSE.



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