Wipro Shareholders Approve Rs 12,000-Crore Share Buyback

In a significant development, shareholders of Wipro Limited, one of India’s leading global information technology, consulting, and business process services companies, have given their resounding approval to the proposed Rs 12,000-crore share buyback plan. The announcement came during the company’s Annual General Meeting (AGM), where the majority of shareholders endorsed the buyback proposal. Here are the key details surrounding this latest development:Source :-business standards 
1. Buyback Plan: Wipro’s board of directors had previously recommended a share buyback program worth Rs 12,000 crore ($1.6 billion) to repurchase equity shares of the company from its shareholders. This move was aimed at returning surplus funds to the shareholders and enhancing overall shareholder value.
2. Shareholder Approval: During the Annual General Meeting, shareholders demonstrated their overwhelming support for the buyback plan. The proposal received a significant majority of votes in favor, emphasizing the shareholders’ confidence in the company’s growth prospects and commitment to generating shareholder returns.
3. Buyback Price and Offer Size: The buyback will be conducted at a price of Rs 700 per equity share, representing a premium over the prevailing market price. The company intends to buy back a maximum of 17.14 crore equity shares under this program, which represents approximately 4.16% of its total paid-up equity share capital.
4. Funding: Wipro has ample financial resources to execute the share buyback smoothly. The buyback will be financed through the company’s free reserves and surplus funds available with it. This approach allows Wipro to optimize its capital structure and utilize its surplus cash effectively.
5. Impact on Shareholders: The share buyback is expected to benefit the shareholders in multiple ways. It provides an opportunity for shareholders to sell their shares at a premium, thereby unlocking value. Additionally, the buyback will lead to a reduction in the company’s outstanding shares, which could result in an increase in earnings per share and enhance the overall return on equity for existing shareholders.
Wipro’s successful share buyback program reflects the company’s commitment to delivering value to its shareholders. The strong endorsement by shareholders underlines their confidence in Wipro’s growth trajectory and the management’s ability to drive sustainable business performance.
As per regulatory requirements, Wipro will initiate the necessary regulatory filings and compliance procedures to carry out the share buyback in accordance with the prevailing rules and regulations. Shareholders are encouraged to stay updated through official communications from Wipro regarding the detailed procedures and timelines associated with the buyback.
Wipro’s strategic focus on enhancing shareholder value, coupled with its relentless pursuit of technological innovation and customer-centric solutions, positions the company for continued success in the dynamic global IT industry.
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