Wipro announces ₹9,500 cr share buyback as Q2 profit dips
Wipro’s board has approved a proposal to buy back 23.75 cr shares at ₹400 apiece
IT services major Wipro on Tuesday posted a 3.4% decline in consolidated net profit to ₹2,465.7 crore for the quarter ended September 30, and said its board has approved up to ₹9,500 crore buyback plan.
The Bengaluru-based company, which had registered a net profit (attributable to equity holders of the company) at
₹2,552.7 crore in the year-ago period, has priced the buyback programme at ₹400 per share.
Wipro’s revenue for the September quarter was nearly flat at ₹15,114.5 crore.
In a regulatory filing, Wipro said its board has approved a buyback proposal, subject to shareholders approval through postal ballot, for purchase of up to 23.75 crore equity shares at ₹400 per share that aggregates up to ₹9,500 crore.
This is 4.16% of the paid-up equity share capital of the company as on September 30, 2020, it added.
At ₹400 apiece, the buyback is 6.4% higher than Tuesday’s closing price of ₹375.5 on BSE.
Wipro expects its revenue from IT Services business to be in the range of $2,022-2,062 million for the December quarter, translating to a sequential growth of 1.5-3.5%.
Its IT services segment revenue in the September quarter was at $1,992.4 million—an increase of 3.7% quarter-onquarter. “We had an excellent quarter with growth in revenues, expansion of margins and robust cash generation. I am very excited about the opportunities that are ahead of us and encouraged by the acceleration in business momentum we have seen this quarter,” Wipro chief executive and managing director Thierry Delaporte said.