Wipro advances nearly 3% on share buyback plan

Wipro shares advanced as much as 4.17 per cent in morning trade on Wednesday after it informed bourses that the board will consider a buyback of equity shares

New Delhi

Updated: April 13, 2016 16:29 IST

Consolidated profit fell to 20.70 billion rupees ($309.57 million) for the three months ended Sept. 30, from 22.41 billion rupees, a year earlier, the company said. (Reuters)

Wipro shares advanced nearly 3 per cent on Wednesday after it informed bourses that the board will consider a buyback of equity shares of the company on April 20, 2016. The company will also announce its financial result for the quarter ended March 2016 on the same day.

The share price of the company closed 2.89 per cent up at Rs 584.60. Buyback of shares means repurchase of outstanding shares.

Wipro promoters own about 73 per cent stake in the company, according to the data available on BSE website.

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According to Kotak Institutional Equities, tender offer route will be more appropriate form of buyback; open market route can lead to promoters’ stake going beyond SEBI mandated 75 per cent limit.

Wipro trades at a discount to most of its peers on one-year forward earnings, according to Thomson Reuters data.

StarMine Intrinsic Valuation model pegs fair value of Wipro shares at Rs 666.24.

(With agency inputs)