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Wipro's 9,500-crore share buyback offer opens on December 29; details you need to know

Wipro
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Wipro

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Wipro, the leading Indian IT services company, has said its share buyback programme of up to 23,75,00,000 equity shares worth Rs 9,500 crore will start on December 29, 2020, and close on January 11, 2021.

Wipro, the leading Indian IT services company, has said its share buyback programme of up to 23,75,00,000 equity shares worth Rs 9,500 crore will start on December 29, 2020, and close on January 11, 2021.

In a regulatory filing on Tuesday, Wipro said, "This is to inform you that the company received final comments from the Securities and Exchange Board of India (SEBI) on December 21, 2020, with respect to the draft letter of offer filed by the company for the captioned buyback."

The Bangalore-based IT major has said that it will send the Letter of Offer to the investors on or before December 26, 2020. The record date for this purpose is December 11, 2020.

It further said, "Pursuant thereto and in accordance with the Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018, the Company will dispatch the Letter of Offer to eligible shareholders (i.e. equity shareholders of the Company as on the Record Date of Friday, December 11, 2020), on or before December 26, 2020."

Wipro shareholders in October had approved a proposal to buy back up to 23,75,00,000 equity shares of the company at Rs 400 per share, for an aggregate amount not exceeding Rs 9,500 crore. This represents 4.16 per cent of total paid-up equity share capital of the company as on September 30, 2020.

The last date of settlement of bids on the stock exchanges is January 20, 2021.

Wipro had last year announced a share buyback of up to 33.3 crore shares at Rs 325 per share, aggregating Rs 10,500 crore, and comprising 3.69 per cent of its total paid-up equity capital. The IT major had previously announced a buyback worth Rs 11,000 crore in 2017, and Rs 2,500 crore in the year 2016.

Besides, the IT major on Tuesday also announced a strategic digital and IT partnership deal with METRO AG. The estimated deal value for the duration of the first 5 years is approximately $700 million. With the intention to extend up to four additional years, it can be a potential spend of up to $1 billion, Wipro said. As part of the deal, more than 1,300 employees across the IT units of the wholesaler from Germany, Romania and India will transfer to Wipro. The deal is expected to generate revenue of over Rs 1,000 crore per year for the Bengaluru-based firm.

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