The shareholders of IT company Wipro have given their approval for a share buyback plan worth Rs 12,000 crore. Wipro has also set a record date for this purpose.
The company has announced that the record date will be June 16, and it will determine the eligible names of equity shareholders.
Details of the Buyback
Wipro’s board has sanctioned the buyback of 26.96 crore equity shares at Rs 445 per share.
This means that the company will repurchase a total of 26,96,62,921 shares, equivalent to 4.91% of its total paid-up equity shares.
However, Wipro shares experienced a decline on Monday and closed at Rs 404 at the end of the trading day.
As a result, Wipro shares are currently trading approximately 9% below the buyback price.
The buyback reserves about 15%, or 4 crore shares, specifically for retail investors.
Retail investors are individuals holding Wipro shares valued at less than Rs 2 lakh.
Potential Gains for Retail Investors
SBI Securities suggests that retail investors could potentially earn a return of 4% to 13% through Wipro’s share buyback.
Meanwhile, based on shareholding data, IIFL Securities expects a profit of around 40%.
Wipro’s Profit Performance
Bengaluru-based IT company Wipro reported a profit of Rs 3,074.5 crore in the recently concluded quarter,
slightly lower than the Rs 3,087.3 crore profit recorded in the same quarter of the previous year.
Throughout the financial year 2022-23, the company’s profit declined by 7.1% to Rs 11,350 crore.
However, Wipro’s revenue for the last financial year stood at Rs 90,487.6 crore, reflecting a growth of 14.4% compared to the previous financial year (2021-22).
