IT giant Wipro, based in Bengaluru, announced on Tuesday that its Rs 12,000 crore share purchase plan will begin on June 22 and end on June 29. The board of the IT behemoth approved a plan in April of this year to purchase up to 26,96,62,921 equity shares from its owners, or 4.91% of its total equity shares.
At a cost of Rs. 445 per equity share, the business will present an offer to purchase the shares back in proportion. The buyback price is 17% higher than the going market rate.
The record date for the buyback scheme has already been established by the corporation as June 16. The company claimed in a BSE filing that the buyback would increase financial ratios like earnings per share (EPS) and return on equity by lowering the equity base of the company. After the buyback, EPS would increase from the current Rs 20.73 to Rs 21.79.
“The buyback is being undertaken by the company to return surplus funds to its equity shareholders, which are over and above its ordinary capital requirements and in excess of any current investment plans, in an expedient, effective, and cost-efficient manner,” Wipro said.
The company claimed that any transaction charges, such as brokerage fees and any applicable taxes, including the repurchase tax, STT, GST, and stamp duty, are not included in the buyback size. More than 3,910 million equity shares have been offered to Wipro by its promoter and promoter group, who together with those in control of the firm have more than 4,000 million equity shares.
Small shareholders may request 62 shares for every 265 shares they held on the record date, according to information provided by the corporation in its filing. Shareholders can apply for 26 shares for every 603 shares they possess in the general category.
