Jobaaj Stories
Wipro, on 27th March announced its last quarter result, as it posted a consolidated net profit of Rs. 3,704 crore. The reports showcased a dip of 1% from the same quarter a year back. But what caught the attention of the investors was the news about the buyback of Rs. 12,000 crore shares.
This IT major announced to buyback up to 269,662,921 equity shares with a face value of Rs 2 each from the company's shareholders proportionately through a tender offer at a cost of Rs 445 per equity share.
In eight years, this company founded by Azim Premji has announced a buyback of Rs. 45,500 crore. According to Wipro, the present share buyback amounted to Rs. 12,000 crore that would cater to 4.91% of the total equity shares.
The IT major added that the letter of offer would be issued in compliance with the Buyback Regulations and that the procedure, record date, timescales, and other information will be disclosed in the public announcement.
Motilal Oswal Securities even stated, “A considerable percentage of the company's cash and investments will be used up by the huge buy-back program (Rs 12,000 crore; Rs 14,800 crore with taxes), which could affect its capacity to continue paying dividends over FY24/25E.”
Currently, the shares of Wipro are trading at Rs. 384.5, 2.23% higher than the previous close.
- Charu Kapoor
Also read, Oracle Financial Services Approves Rs. 225 Interim Dividend
