Indian IT software services company Wipro will be buying back up to 40 million equity shares for a maximum value of Rs. 2,500 crore at a price of Rs. 625 per share. The Bengaluru-based company informed the stock exchanges about it in a regulatory filing on Wednesday.
The buyback would constitute about 1.62 percent of its total equity share capital. The decision was taken at the company's board meeting held on Wednesday.
"The buyback is proposed to be made from all existing shareholders of the company (including persons who become shareholders by cancelling American Depository Receipts and receiving underlying equity shares) on the record date on a proportionate basis under the tender offer route in accordance with the provisions contained in the Securities and Exchange Board of India...," the company said in its regulatory filing to the BSE.
The Wipro stock closed at Rs. 601.35 on Wednesday, up 2.07 percent from its previous close. The buyback decision was announced after trading hours.
The board has fixed the record date as May 6, 2016, for the proposed buyback.
The shareholding pattern of the company as on March 31, 2016, shows that promoters and promoter groups hold 73.34 percent of the equity stake in the company, while foreign holdings (including FIIs, NRIs, ADRs and OCBs) hold 14.04 percent. Indian public, corporates and others hold 8.05 percent.