Wipro, the Bengaluru-headquartered IT services company, announced a Rs 10,500 crore share buyback programme on Tuesday. The company will repurchase 323.1 million shares, which represents 5.35 per cent of total paid-up equity share capital, at Rs 325 apiece, as per its stock exchange filing. The buyback price is nearly 16 per cent premium to the current market price (as of Tuesday's close).
Given the modest performance in the fourth quarter of the financial year 2018-19 (4QFY19) and soft guidance for the first quarter of financial year 2020 (1QFY20), the stock is expected to underperform peers in the near-term. Hence, buyback
