HomeCURRENT AFFAIRSBUSINESSWipro announces plans to buyback shares

Wipro announces plans to buyback shares

The Azim Premji-founded company had, as on Sept. 30, net cash reserves of Rs 29,900 crore.

Wipro Ltd will discuss on 13 October a proposal to buy back its equity shares, the software services company said in a regulatory filing on Wednesday.

This follows larger peer Tata Consultancy Services (TCS) Ltd approving in a board meeting earlier in the day a ₹16,000 crore programme to buy back equity shares at ₹3,000 apiece.

The Bengaluru-headquartered company will also announce its earnings for the quarter ended September on the same day, it said in an exchange filing on Oct. 7, while not revealing other details about the buyback.

The Azim Premji-founded company had, as on Sept. 30, net cash reserves of Rs 29,900 crore.

The announcement comes on a day when larger rival Tata Consultancy Services Board has cleared an up to Rs 16,000 crore buyback plan.

“…the Board of Directors will be considering a proposal of buyback of equity shares of the company at the…meeting scheduled to be held on October 13, 2020,” Wipro said in a regulatory filing. However, no other details were provided.

“The outcome of the Board meeting will be communicated to the stock exchanges soon after the conclusion of the Board meeting on October 13, 2020,” it added. Wipro is also slated to announce its results for the September quarter that day.

Meanwhile, ICICI Securities expects Wipro’s global IT services revenues to increase 1.1 per cent quarter-on-quarter (QoQ) in constant currency mainly led by project ramp-ups and lower base in the previous quarter.

Further, with the cross-currency tailwind, the brokerage firm expects dollar revenues to increase by 2.4 per cent QoQ. EBIT margins in global IT services are expected to increase 20 basis points QoQ to 19.2 per cent, mainly led by operating leverage benefit.

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