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Wipro surges over 8%, hits one-year high on share buyback plan, Q1 results

The buyback price will be Rs 320 ($4.95) per equity share for up to Rs 11,000 crore ($1.7 billion)

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Press Trust of India New Delhi
Last Updated : Jul 21 2017 | 11:48 AM IST
Shares of Wipro on Friday surged over 8 per cent to touch its one-year high level after the company announced a mega buyback offer of Rs 11,000 crore and posted a 1.2 per cent rise in consolidated net profit for the April- June quarter.

The scrip of India's third largest IT firm opened the day on a bullish note and further soared 8.17 per cent to Rs 291 -- its 52-week high level -- on BSE.

On NSE, it zoomed 8 per cent to touch its one-year high of Rs 290.90.

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The stock was the biggest gainer on both the key benchmark indices during the morning trade.

"Wipro announced a good set of numbers. On the positive side, the board of directors approved a buyback proposal," said Sarabjit Kour Nangra, VP Research - IT, Angel Broking.

Wipro yesterday announced a mega buyback offer of Rs 11,000 crore, joining the growing roaster of IT firms returning surplus cash to their shareholders.

"The Board of Directors approved a buyback proposal, subject to the approval of shareholders through postal ballot, for purchase by the company of up to 343.75 million equity shares of Rs 2 each (representing 7.06 per cent of total equity capital)," Wipro said in a statement.

The buyback price will be Rs 320 ($4.95) per equity share for up to Rs 11,000 crore ($1.7 billion), it added.

Share buybacks improve earnings per share and return surplus cash to shareholders while also supporting share price during periods of sluggish market conditions.

Besides, Wipro has posted a 1.2 per cent rise in its consolidated net profit at Rs 2,076.7 crore for the April-June quarter.

The Bengaluru-based firm had registered a net profit of Rs 2,052 crore in the year-ago period. Its total income grew marginally to Rs 14,281.4 crore during the first quarter.

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First Published: Jul 21 2017 | 11:45 AM IST

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