Shares of Wipro today rose by nearly 3 per cent after the company said its shareholders have approved its Rs 11,000-crore buyback proposal.
The stock ended 2.54 per cent higher at Rs 299.05 on BSE. During the day, it went up by 2.86 per cent to Rs 300 -- its 52-week high.
At NSE, shares of the company gained 2.71 per cent to close at Rs 299.10.
The stock was the biggest gainer among the bluechips on both the key indices.
The company's market valuation also went up by Rs 3,616.23 crore to Rs 1,45,537.23 crore.
In terms of equity volume, 7.79 lakh shares of the company were traded on BSE and over one crore shares changed hands on NSE during the day.
The Bengaluru-based company has fixed September 15 as the the record date for the buyback offer.
It had said last month that it will purchase up to 343.75 million shares at Rs 320 (USD 4.95) per scrip. The total size of the offer will be up to Rs 11,000 crore (USD 1.7 billion).
"The aforesaid special resolution has been passed through postal ballot and e-voting by members by requisite majority," Wipro said in a filing to the BSE yesterday.
The voting, which ended on August 28, saw 99.68 per cent of the votes being cast in favour of the buyback offer.
Share buybacks improve earnings per share and return surplus cash to shareholders while also supporting share price during periods of sluggish market conditions.
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