Shares of Wipro rose over 3% in the early trade on Monday after the third largest IT services firm Wipro on Friday said its board will consider a proposal for buyback of equity shares on July 20.
Reacting to the development, the stock of the company gained as much as 3.2% to Rs 268 on the BSE. The stock was the top gainer on Sensex and Nifty.
With this, Wipro joins the growing roster of Indian IT firms that have announced buyback offers to return surplus cash to their books to their shareholders.
“Wipro Ltd…Board will consider a proposal for buyback of equity shares of the company on July 20, 2017,” the company said in a regulatory filing.
The company’s board is meeting July 19 and 20, 2017 to also consider Wipro’s first quarter results. The company did not disclose the size of the buyback.
As on March 2017, Wipro had cash and cash equivalents totaling Rs 5,271 crore ($813 million) on its books.
Among Indian IT companies, TCS, which had a cash pile of over Rs 43,000 crore, has already completed a Rs 16,000 crore buyback program earlier this year.
The Infosys board has already identified an amount of up to Rs 13,000 crore ($2 billion) to be paid out to shareholders during the financial year 2018, through dividend and share buyback.
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