Joining the pack of other IT majors, Wipro too has announced a buyback offer this year again after the yester year's buyback of Rs. 2500 crore. This time the buyback is valued at Rs. 11,000 crore and the company shall be distributing the extra cash with it to its shareholders.
The price of the buyback has been decided at Rs. 320 for a share for upto Rs. 11,000 crores. The buyback shall involve a buyback of as many as 34 crore shares that amount to 7% of the total outstanding shares of the company.
Additional information as per the rules and regulations of buyback shall be announced by the company in due time.
What you should be doing? Should you be tending your Wipro shares back to the company in this buyback offer?
At a today's price of Rs 287.15 on the BSE, the offer throws open a good opportunity for investors to make further good gains. The buyback offer news by the company also triggered the company share to register a fresh 52-week high of Rs. 290.9 today.
The company reported weak numbers for the quarter ended June well below expectations at Rs. 2,076.5 crore, lower by 8.2%.
Analysts say on the buyback offer
Way2wealth gives a thumbs up to the buyback offer with a premium of 18.5% for investors..The muted guidance figures as well as slow down in the IT sector due to protectionist measures and visa changes, investors shall be well-off tendering their shares back to the company.
Also, keeping in mind the lower growth outlook for IT companies and protectionist measures by the US, investors are better off tendering the shares considering the muted guidance.