Tech Giant Expected To Price Offer In 1,650-1,670 Range

The buyback saw Azim Premji-affiliated entities tendering 22.89 crore shares worth about Rs 9,156 crore during the process, a regulatory filing said.

The company has set December 11, 2020 as the record date for determining eligibility for the buyback.

IT services major Wipro on Tuesday said its up to Rs 9,500-crore sh...

The buyback, which is proposed to be made under the tender offer route, is subject to shareholders approval by passing a special resolution through postal ballot, the filing said.

Wipros shareholders have approved its proposal to buy back up to 23.75 crore equity shares, equivalent to 4.16% stake in the company, at Rs 400 per share, for up to Rs 9,500 crore.

Last month, TCS shareholders had approved a proposal to buy back up to 5,33,33,333 equity shares of the company at Rs 3,000 per scrip for an aggregate amount not exceeding Rs 16,000 crore.

Its Board of Directors and shareholders have already approved its proposal to buyback up to 23,75,00,000 equity shares of the company at Rs 400 per share

Wipros larger rival Tata Consultancy Services (TCS) has also proposed a mega Rs 16,000-crore buyback plan at Rs 3,000 per equity share.

“At the current price of Rs340, the tender of shares in open offer can fetch a profit of Rs 60 per share on 50% of positions. The break-even price for the residual shares will be Rs 280,” said a note by ICICI Direct.

Wipro on Tuesday posted a 3.2% sequential growth in consolidated profit for the quarter ended September and announced a share buyback of Rs 9,500 crore.

“With the stock trading at 21.6 times, its 12-year high valuation, which we believe is partly driven by expectations of the share buyback, there is no material change in near-term growth outlook and our belief that Wipro continues to have the weakest growth profile among its peers,” said Sumeet Jain of Goldman Sachs.

The set price for buyback also is not likely to enthuse investors given the premium is just 6 per cent from current market price.

Wipro will buy 4.16 per cent of the total paid up equity shares or 237.5 million shares at Rs 400 per share.

...the Board of Directors will be considering a proposal of buyback of equity shares of the company at the...meeting scheduled to be held on October 13, 2020, Wipro said in a regulatory filing.

TCS said this evening that its board has approved a proposal to buy back shares worth up to Rs 16000 crore.

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