Bengaluru-based IT major Wipro on Tuesday announced that its Rs 12,000-crore share buyback plan will open on June 22 and will close on June 29.
In April this year, the IT giant’s board had approved a proposal to buy up to 26,96,62,921 equity shares, representing 4.91% of its total number of equity shares from its shareholders.
The company will buy back the shares on a proportionate basis by way of tender offer at a price of Rs 445 per equity share. The buyback price is at a 17% premium to the current market price.
The company has already fixed June 16 as the record date for the buyback programme. The buyback would help improve financial ratios like earnings per share (EPS) and return on equity by reducing the equity base of the company, said the company in a BSE filing. EPS would improve to Rs 21.79 post buyback from the current Rs 20.73.
“The buyback is being undertaken by the company to return surplus funds to its equity shareholders, which are over and above its ordinary capital requirements and in excess of any current investment plans, in an expedient, effective and cost-efficient manner,” Wipro said.
The company said that the buyback size does not include any transaction costs like brokerage, applicable taxes such as buyback tax, STT, GST, stamp duty and others.
Wipro has received offers of more than 3,910 million equity shares from its promoter and promoter group, who along with persons in control of the company hold more than 4,000 million of equity shares.
The company also stated in its filing that small shareholders are eligible to apply for 62 shares for every 265 shares held on the record date. In the general category, shareholders are eligible to apply 26 shares for every 603 shares held.