On April 27, the Board of Directors of Wipro, a Bengaluru-based IT company, approved the repurchase of equity shares worth Rs 12,000 crore from shareholders. Share repurchases are one way for firms to reward their shareholders.

The business intends to purchase up to 26,96,62,921 equity shares at 4.91% of the total equity shares through a tender offer at Rs 445 per equity share. The repurchase price is about 19% more than the current closing price of Rs 374.35. Surprisingly, although at a premium, the buyback price is significantly lower than the 52-week high price of Rs 530.

Wipro further stated that the planned repurchase is subject to shareholder approval via a special resolution via postal vote. The procedure, record date, timescales, and other specifics will be conveyed via the public notice and letter of offer, which will be published in compliance with the Buyback Regulations.

As of April 21, promoters and promoter groups owned 72.92% of Wipro. Mutual funds held 2.74% of the stock, while FIIs held 6.42%. The planned buyback would also include members of the company’s promoter and promoter group.

Previously, the IT behemoth announced a Rs 10,500 crore share purchase in 2019. A total of 32.31 crore shares were purchased at Rs 325 per share. Wipro announced an Rs 11,000 crore share buyback in 2017 and a Rs 2,500 crore share buyback in 2016, proposing repurchasing 34.37 crore shares at Rs 320 each and 4 crore shares at Rs 625 each.