InvestorQ : Has Wipro announced the details of its share buyback program?
Rutuja Nigam made post

Has Wipro announced the details of its share buyback program?

Answer
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2 weeks ago


As promised, Wipro came out with a generous buyback program for its shareholders. It approved a buyback of Rs.9500 crore. The buyback will entail the company buying back 23.75 crore shares at a maximum price of Rs.400 per share.

It may be recollected that only last year Wipro had announced a share buyback of up to 33.3 crore shares at Rs.325 per share amounting to Rs.10,500 crore. Since then, the stock price has appreciated sharply in conjunction with the sentiments surrounding all IT stocks.

This announcement from Wipro comes just a week after TCS also announced a mega Rs.16,000 crore buyback offer to its shareholders. Like TCS, Wipro will also be buying the shares from its shareholders at a premium to the market price.

Over the last two years, buybacks had been stuck in a zone of uncertainty due to the tax on buybacks at 20% of the difference between the buyback price and the issue price. Now, with dividends being taxed at peak tax rates from FY20, buybacks are looking relatively better.