WIPRO BUYS 9500 CRORE BUYBACK SHARES | 2020

 WIPRO BUYS 9500 CRORE BUYBACK SHARES 

BUYBACK - the buying back of goods by the original seller.

Domestic IT giant Wipro today announced a buyback of shares worth Rs 9,500 crore. As part of this massive plan, the company will buy 23.75 crore shares, equivalent to a 4.16 percent stake in Paid-up Equity Share Capital. It is prepared to pay a total of Rs 9,500 crore at Rs 400 per share.

Shares of Wipro closed 6.4 percent higher at Rs 375.50 in BSE trading on Tuesday. Wipro told stock exchanges that the company's board of directors had approved the buyback of the shares. TCS, the country's largest IT company, last week announced a massive buyback of Rs 16,000 crore. As part of this, TCS has moved to buy at Rs 3,000 per share.

Recently, Wipro also announced a huge buyback following in the footsteps of TCS. Wipro promoters have signaled that they also want to sell their stake in the company as part of the plan. 

As of the 9th of this month, the Promoter Group has a 74.02% stake in Wipro. Shareholders have yet to approve a plan to repurchase the company's shares. The company will seek its approval by the postal-ballot method by special resolution.

Wipro Consolidated posted a net profit of Rs 2,465.7 crore for the second quarter ended September this fiscal (2020-21). 2,552.7 crore during the same period last fiscal, down 3.4 percent. The company had posted a revenue of Rs 15,114.5 crore for the July-September quarter. 

Wipro expects the IT services business to generate $ 202.2-206.2 billion in revenue in the third quarter ending December. That is, the company expects revenue to grow 1.5-3.5 percent on a quarterly basis. The company's IT services business revenue rose 3.7 percent to $ 199.24 billion for the quarter ended September.

Wipro has announced that it will buy engineering services company Eximius Design for $ 8 crore (Rs 586.30 crore). He said the acquisition would help expand into new markets and enhance future generation technology capabilities such as Connected Products, Embedded Artificial Intelligence (AI), and Security. Eximius has design centers in India and Malaysia.