Wipro’s Largest Buyback ever of this magnitude


The Rs 12,000 crore share buyback that Wipro reported post its Walk quarter results was its greatest as far as buyback size. Assuming one incorporates the past four offer buybacks that the Bengaluru-based IT firm reported beginning around 2016, the all-out buyback declared by the Azim Premji established organization remains at Rs 45,500 crore in eight years.

Huge Buyback of Wipro

Wipro announced on Thursday that it would make a tender offer to buy back up to 269,662,921 equity shares at a price of Rs 445 per equity share from the company’s shareholders on a proportionate basis. According to Wipro, the share buyback would amount to Rs 12,000 crore and account for 4.91 percent of the total number of equity shares.

The IT major said the cycle, record date, timetables, and different subtleties will be imparted in the public declaration, adding that the letter of the proposition will be distributed as per the Buyback Guidelines.

“The extensive program of buy-backs (Rs 12,000 crore; A note from Motilal Oswal Securities stated, “Rs 14,800 crore (including taxes) will deplete the company of a significant portion of its cash and investments and may impact its ability to maintain payout over FY24/25E.”

Wipro’s announcement of a Rs 12,000 crore share buyback was its largest buyback in terms of size. If one takes into account the four previous share buybacks that the Bengaluru-based IT company has announced since 2016, the company founded by Azim Premji has announced a total of Rs 45,500 crore in eight years.

In 2020, Wipro announced a Rs 9,500 crore share buyback. For Rs 400 each, the company had repurchased 23.75 crore shares. According to AceEquity’s data, the IT major announced that the extinguishment of shares would be completed on January 21, 2021.

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