Wipro to buy back 40 mn shares

Bengaluru, April 20 (IANS) Software major Wipro Ltd. on Wednesday announced a buyback of 40 million equity shares of Rs.2 face value at Rs.625 per equity share from its investors.

“The board approved a buyback proposal for purchase of 40 million equity shares of Rs.2 each at a price of Rs.625 per share from shareholders on a proportionate basis through a tender offer,” the IT firm said in a statement here.

“We always looked at an opportunity to return value to our shareholders. The buyback price of Rs.625 per share is the average price of the scrip over the last 60 days of trading on bourses,” Wipro’s chief financial officer Jatin Dalal told reporters later.

The buyback payable in cash will cost the company Rs.2,500 crore as per the provision of the Companies Act, 2013 and the SEBI (buyback of securities) regulations, 1998.

The quantum of shares (40 million) to be bought from the company’s investors represents only 1.62 percent of total equity capital.

The outsourcing firm’s blue chip scrip closed at Rs.601.35, which is Rs.12.20 or 2.07 percent from Tuesday’s closing price of Rs.589.15 and opening price of Rs.595 and the day’s high of Rs.606.75.

–IANS

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