Wipro extends buyback of ₹12,000 crore closing to June 30
Wipro, the renowned IT company, has announced an extension of the closing date for its ₹12,000 crore buyback offer due to a shift in the public holiday schedule for Bakra Eid. The buyback, which opened on June 22, will now conclude on June 30 instead of the previously planned date of June 29.
In a recent regulatory filing, Wipro stated that the Securities and Exchange Board of India (SEBI) has granted permission to extend the tendering period by one working day, taking into account the change in the working day from June 29, 2023, to June 28, 2023. Consequently, the new Buyback Closing Date is set for Friday, June 30, 2023, instead of Thursday, June 29, 2023.
According to regulatory guidelines, a buyback offer must remain open for a minimum of five working days. Accordingly, Wipro’s buyback offer was originally scheduled to close on June 29, as June 28 was designated as a public holiday.
However, the government decided to shift the Bakrid festival from June 28 to June 29, prompting exchanges, including Wipro, to adjust their schedules for the buyback offer accordingly.
Wipro has also provided instructions for eligible shareholders who hold equity shares in physical form, stating that they should submit the duly filled and signed Tender Form, TRS, and required documents to the Buyback Registrar before 5 pm on Friday, June 30, 2023.
The buyback offer by the technology giant encompasses 26,96,62,921 equity shares, equivalent to 4.91% of the total paid-up equity shares of the company, amounting to ₹12,000 crore. The floor price for each equity share in the buyback has been fixed at ₹445.
Following the closure of the buyback, the Registrar will verify the tendered equity shares by July 4, while the acceptance/non-acceptance of these shares by the Registrar to the stock exchanges is scheduled for July 6, 2023.
Important dates in the buyback process include July 7, which marks the final day for the settlement of bids on the stock exchanges, return of unaccepted equity shares to eligible shareholders/stock brokers, and payment of consideration to eligible shareholders who participated in the buyback offer. The due date for the extinguishment of equity shares under the buyback is set for July 18.
JM Financial serves as the manager for the buyback, and KFIN Technologies is the appointed registrar.
On the Bombay Stock Exchange (BSE), Wipro’s share price closed at ₹382.55 per share, reflecting a 0.43% increase on Tuesday, with the stock nearing the day’s high at ₹383.80 per share.
As of June 27, 2023, Wipro’s market capitalization stands at approximately ₹2.10 lakh crore.
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The buyback initiative enables Wipro to distribute surplus cash to its shareholders holding Equity Shares in proportion to their shareholding, thereby enhancing overall returns. Additionally, the buyback will contribute to improving Wipro’s financial ratios, such as earnings per share and return on equity, by reducing its equity base.
Following the buyback, Wipro’s annualized return on net worth is expected to rise to 18.08%, compared to the previous one-year period ending on March 31, 2023, where it stood at 14.62%.
About Wipro:
Wipro, a renowned multinational corporation from India, specializes in providing a diverse range of services in the fields of information technology, consulting, and business process management. As a leading player in the industry, Wipro has earned recognition as one of the prominent Big Tech companies.
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