Wipro board approves up to Rs 9,500-cr buyback plan

By: |
October 13, 2020 6:00 PM

In a statement, Wipro Chief Financial Officer Jatin Dalal said the company's free cash flows as a percentage of net income for the first half was at 160.7 per cent of net income.

This is 4.16 per cent of the paid-up equity share capital of the company as on September 30, 2020, it added.This is 4.16 per cent of the paid-up equity share capital of the company as on September 30, 2020, it added.

IT services major Wipro on Tuesday announced an up to Rs 9,500 crore buyback plan at Rs 400 per equity share.

The announcement comes a week after its rival Tata Consultancy Services (TCS) announced a mega Rs 16,000-crore buyback plan at Rs 3,000 per equity share.

In a regulatory filing, Wipro said its board of directors has approved a buyback proposal for purchase of up to 23.75 crore equity shares at Rs 400 per share and aggregates to an amount of up to Rs 9,500 crore.

This is 4.16 per cent of the paid-up equity share capital of the company as on September 30, 2020, it added.

At Rs 400 apiece, the buyback is 6.4 per cent higher than Tuesday’s closing price of Rs 375.5 on the BSE.

In a statement, Wipro Chief Financial Officer Jatin Dalal said the company’s free cash flows as a percentage of net income for the first half was at 160.7 per cent of net income.

“The announcement to buyback equity shares is part of our philosophy to deliver consistent returns to shareholders,” he added.

Last year, Wipro had undertaken a buyback programme of 32.31 crore shares at Rs 325 apiece, aggregating to about Rs 10,500 crore.

Wipro had previously announced a buyback worth Rs 11,000 crore in 2017, and Rs 2,500 crore in the year 2016.

The regulatory filing on Tuesday said members of the promoter and promoter group of the company have indicated their intention to participate in the proposed buyback. Promoter and promoter group held 74.02 per cent shareholding as on October 9, 2020.

The proposed buyback is subject to approval of shareholders by way of a special resolution through a postal ballot, it added. The process, timelines and other requisite details with regard to the postal ballot will be communicated in due course, it said.

“The company has formed a committee to oversee and implement the buyback and to do all such acts, deeds, matters and things as it may, in its absolute discretion, deem necessary, expedient, usual or proper in connection with the proposed buyback,” it said.

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