Business

IT Major Wipro’s Share Buyback Programme to Open on June 22

Bangalore-based IT behemoth Wipro announced the date for kick-starting its Rs 12,000 crore share buyback plan, the largest programme in its history. As per the company’s announcement, the buyback will commence on June 22 and conclude on June 29. Shareholders of Wipro that are eligible can tender their shares during this tenure.

In the letter of offer that was issued yesterday, the IT major said that the retail entitlement ratio has been set at 23.4% while it is 4.3% for others. With a 17% premium over Monday’s closing price of Rs 380, the Nifty company will tender 26.97 crore shares for purchase at a price of Rs 445.

15% of the shares will be reserved for retail shareholders, the ones that own shares worth less than Rs 2 lakh, as a result of the buyback, which will lead to the extinction of 4.91% of the shares. For every 265 shares held on the record date, June 16, small shareholders are eligible to apply for 62 shares. The ratio has been set at 26 shares for every 603 shares held in the general category. The aggregate shareholding of the promoters would rise from 72.91% to 73.37% if the buyback were to be 100% in size.

With this buyback program, Wipro intends to buy back around 269,662,921 shares of face value Rs 2 each on a proportionate basis. This will be done at a price of Rs 445 per equity share by way of a tender offer. However, this is not the definite number of shares that the company will be buying back. The total number of shares tendered will determine how many shares the company will ultimately buy from each shareholder.

Performance In Stock Market

 

Meanwhile, following the buyback announcement, Wipro’s stock price has been experiencing an increase in value. Today, at 12:52 pm, Wipro was trading with an increase of 0.73% at Rs 385.35 as compared to yesterday’s Rs 382.55.

Also Read: Reliance Industries Gets A Nod From The RBI to Retain $2 Billion Surplus From Lenders

Malika Sahni

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