Wipro’s ₹10,500 crore share buyback explained in 5 points

The board of IT major Wipro on Tuesday approved a ₹10,500 crore share buyback programme, its third in four years. In 2017, Wipro had undertaken a ₹11,000 crore buyback and in 2016, a ₹2,500 crore programme. A share buyback is a process through which a company purchases equity from its shareholders, usually at a price near to or higher than the prevailing market price. When a company buys back equity, it reduces its outstanding shares in the market.

Here are 5 things to know about Wipro’s latest buyback offer:

1 Under the buyback, Wipro proposes to buy up to 32.30 crore shares for an aggregate amount not exceeding ₹10,500 crore, at a price of ₹325. This constitutes 5.35% of the total paid-up equity share capital of the company