INSUBCONTINENT EXCLUSIVE:
Bengaluru: Wipro is set to announce its largest share buyback ever, worth $1.7 billion (Rs 12,000 crore), with market regulator Sebi
clearing the decks for it
A buyback can be done only once in 12 months.
This time, the shares are expected to be bought back at Rs 320 a piece, which is a 17 per cent
premium to the prevailing share price of Rs 273 on the BSE
The price is 33 per cent higher than the six-month average share price of Rs 240.
There was lack of clarity on whether a buyback could be
launched while a scheme of amalgamation was pending before the National Company Law Tribunal (NCLT)
because of a backlog of cases
The company said its shareholders expect a buyback because it is an integral part of its approach to returning surplus cash to them and they
would have planned their investments accordingly.
Sebi, in an order dated February 15, allowed Wipro to go ahead with the buyback
We announced an interim dividend as part of our January 2019 earnings release
The board evaluates our approach towards payouts on an ongoing basis
capital you cannot use to make the RoE (return on equity) that the business is making
Technologies and Mindtree have all done share buybacks in the past few years
