Infosys and Wipro are slated to open their mega share buybacks next week offering to collectively return as much as up to Rs 24,000 crore in cash to small and large investors. We take a brief look at the buybacks of TCS, Infosys and Wipro.
Two of India’s largest information technology companies Infosys and Wipro are slated to open their mega share buybacks next week offering to collectively return as much as up to Rs 24,000 crore in cash to small and large investors. The two-week long share repurchase programmes running from 29 November to 14 December will improve both companies’ earnings per shares by providing them with an opportunity to return unutilised and surplus cash to shareholders. Infosys’ share buyback will be the first in the company’s 36-year long history, while Wipro’s offer follows another large share buyback of Rs 2,500 crore that it did in May 2016.
Infosys’ share repurchase is managed by Kotak Mahindra Capital Company and JPMorgan India while Wipro’s buyback is managed by JM Financial Institutional Securities. Earlier in May 2017, India’s largest IT firm Tata Consultancy Services completed its share repurchase worth Rs 16,000 crore, making it the largest ever share buyback in Indian corporate history.
It seems to be cheers all the way for shareholders of blue-chip Indian information technology firms, with the second-largest and the third-largest companies Infosys and Wipro coming up their huge share buybacks. To the investors looking to cash out, it offers tempting opportunities either in the buyback program or in the secondary market. We take a brief look at the buybacks of TCS, Infosys and Wipro.
This table shows India’s three largest information technology companies’ share buybacks at a glance.
|Buyback size (Rs crore)||13,000||11,000||16,000|
|Number of shares (crore)||34.37||11.3||5.61|
|% of Paid up capital (%)||20.51||7.06||2.85|
|Face value (Rs)||5||2||1|
|Buyback price (Rs)||1,150||320||2,850|
|Current market price (Rs)||961.35||294.6||2,704.65|
|Premium at CMP (%)||19.62||8.62||13.7*|
|Market Cap (Rs crore)||1,43,372.71||2,20,821.45||5,17,747.79|
Note: TCS buyback concluded in May 2017
*TCS share price premium is over the CMP when the buyback price was announced.