New Delhi: India’s third software services company Wipro said on Wednesday that its shareholders have approved the company’s Rs 11,000-crore repurchase proposal.
Last month, the Bengaluru-based firm said it will buy up to 343.75 million shares in Rs 320 (USD 4.95) per share. The total size of the offer will be up to Rs 11,000 crore (USD 1.7 billion).
“The special resolution mentioned above has been approved by postal voting and electronic voting by members by a majority required,” Wipro said in a request to BSE.
The vote, which ended on August 28, allowed 99.68% of the votes to be cast in favor of the repurchase offer. Wipro was trading marginally higher at Rs 291.40 on BSE.
Share repurchases improve earnings per share and return cash surplus to shareholders, while also supporting the stock price during periods of slow market conditions.
As of June 30, 2017, Wipro had ‘cash and cash equivalents’ of Rs 5,432 crore in its books and ‘investments’ of Rs 31,772 crore, for a total of Rs 37,204 crore.
Among Indian IT companies, TCS, which had a kitty of more than Rs 43,000 crore, has already completed a crunch repurchase program of 16,000 rupees earlier this year. Infosys has also announced a repurchase offer of up to Rs 13,000 crore (USD 2 billion) to be paid to shareholders during the fiscal year 2018.
