Wipro To Consider Third Buyback Proposal On April 16
Wipro Ltd. will consider a third buyback proposal to reward shareholders.
This proposal will be discussed at its board meeting scheduled to be held on April 16, according to an exchange filing of India’s third-largest software services provider.
A buyback can be done only once in 12 months. Wipro did a buyback of shares worth Rs 2,500 crore in 2016 and Rs 11,000 crore in 2017.
The cash and cash equivalents of the company stood at Rs 14,277 crore as of December. Its net worth as of today is Rs 54,712 crore.
A company can buy back up to 10 percent of its net worth without the approval of shareholders, according to guidelines of the Securities and Exchange Board of India. For Wipro, this amount stands at Rs 5,471 crore. The company, however, can buy back up to 25 percent of its net worth with the approval of its shareholders. This would amount to Rs 13,678 crore for Wipro.