Wipro Share Price: IT stock falls nearly 4% after company announces promoters' participation in buyback
Wipro Share Price: Last seen, the stock was trading at Rs 204.50, down 2.71 per cent, and the company's market cap stood at Rs 2,14,490.13 crore.
Shares of IT major Wipro fell nearly 4 per cent on Friday, a day after the company announced its quarterly results and said that its promoters will participate in a Rs 15,000 crore share buyback. Following this update, the stock opened in the red at Rs 206.95, a dip of Rs 3.25 or 1.54 per cent from the previous close of Rs 210.20 on the BSE. The stock witnessed profit booking and fell further amid a spurt in volume by more than 1.74 times. The stock touched a low of Rs 202.60, representing a 3.62 per cent dip from the last closing price. Last seen, the stock was trading at Rs 204.50, down 2.71 per cent, and the company's market cap stood at Rs 2,14,490.13 crore.
On the National Stock Exchange (NSE), the counter opened at Rs 205, up from the previous close of Rs 210.26. It later touched the intraday high and low of Rs 206.45 and Rs 202.50, respectively.
Share buyback
The Bengaluru-headquartered firm has announced a share buyback programme worth Rs 15,000 crore, its largest repurchase offer to date, surpassing its Rs 12,000 crore repurchase carried out in 2023, but lags behind its competitors' similar offers in recent times.
Wipro's Chief Financial Officer, Aparna Iyer, has stated that the company promoter group intends to participate in the share buyback.
Wipro share buyback price
In a regulatory filing, Wipro said its board has approved a proposal to buy back shares at Rs 250 apiece through the tender offer route. The buyback price of Rs 250 per share represents a premium of about 19 per cent over Thursday's closing price of Rs 210.20 on the BSE.
This also marks the company's first share buyback in nearly three years.
Share buybacks are typically undertaken by companies to return surplus cash to shareholders, improve earnings per share, and signal confidence in their financial health.
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(This article is for informational purposes only and should not be construed as investment, financial, or other advice.)