Indian IT major, Wipro Ltd announced a share buyback of Rs 11,000 at the board meeting held today to consider the April-June quarter results. However, the company said its net profit grew 1.2% to Rs 2,076.7 crore for the April-June quarter.
Indian IT major, Wipro Ltd announced a share buyback of Rs 11,000 at the board meeting held today to consider the April-June quarter results. Earlier this week, Shares of Wipro Ltd jumped over 5%, after the company said on Friday that it would consider a share buyback proposal in the company’s board meeting on 20 July.
The IT services solution provider announced the buyback to buy up to 343.45 million shares at the price of Rs 320 per share which is at a whopping 18.51% premium than its today’s closing price of Rs 270 on NSE.
However, the company said its net profit grew 1.2% to Rs 2,076.7 crore for the April-June quarter while the total revenue stood at Rs 14,281.4 crore which is marginally higher than the total income in the same period in previous fiscal.
Earlier last week on Friday the company said in a filing to the stock exchange,“ Wipro Ltd informed BSE that the Board will consider a proposal for buyback of equity shares of the Company on July 20, 2017.” In June 2017, Wipro successfully completed the issue of bonus share in ratio 1:1, which came into effect on 13 July.
After the proposed share buyback Wipro now joins the likes of Tata Consultancy Services, Infosys and Cognizant which had announced buyback offers to reduce surplus cash on their books and to return the same to their shareholders.
The Infosys board has also identified an amount of up to Rs 13,000 crore to be paid out to shareholders during the financial year 2018, through dividend and share buyback in its latest board meeting held on 14 July 2017. In May 2017, TCS successfully completed a 5.61 crore equity shares buy back for an aggregate amount of Rs 16,000 crore.