In a statement to the exchanges, Wipro Ltd said its board has approved the proposal to buyback over 32.30 crore equity shares, that is 5.35 percent of the total paid-up share capital for Rs 10,500 crores in the meeting held on Tuesday. These shares will be bought at a price of Rs 325 apiece.
The statement said, "at its meeting held on April 16, 2019 (Wipro's Board of Directors) has approved a proposal to buyback up to 32,30,76,923 equity shares (Thirty Two Crores Thirty Lakhs Seventy Six Thousand Nine Hundred and Twenty Three only) of the Company for an aggregate amount not exceeding Rs. 105,00,00,00,000/- (Rupees Ten Thousand Five Hundred Crores only) (hereinafter referred to as the "Buyback Size"), being 5.35% of the total paid-up equity share capital, at a price of Rs. 325/- (Rupees Three Hundred and Twenty Five only} per equity share."
Members of the promoter and promoter group of the Company have indicated their intention to participate in the proposed Buyback.
The company said that details on the record date and timelines regarding the buyback will be announced in the coming days.
Wipro had previously announced a buyback worth Rs 11,000 crore in 2017 and its first one in 2016 was worth Rs 2,500 crore. Share buybacks can be done only once in 12 months.
Further, the company released its earnings for the January-March 2019 quarter. Wipro Ltd reported a 37.74 percent increase in consolidated profit on a year-on-year basis for the period to Rs 2,483 crore on the back of a strong performance from its banking, financial services, and insurance segment. For March 2018, its net profit was recorded at Rs 1,803 crore.
The company's revenue from IT services, its forte, rose by 11.1 percent to Rs 15,038 crore for the fourth quarter of 2018-19 from Rs 13,824 crore last year.
In dollar terms, it was $2,075.5 million, marking a 1.4 percent quarter-on-quarter growth.
The IT giant projects revenue from IT Services in the current quarter ended June 2019 to range between $2,046 million to $2,087 million. "This translates into a sequential growth of -1.0% to 1.0% excluding the impact of the divestment of our Workday and Cornerstone On Demand business which was concluded in the quarter ended March 31, 2019," it said.