IT company Wipro has changed the last date for its Rs 12,000 crore share buyback. The company has extended the last date from June 29 to June 30. Market regulator SEBI had approved Wipro to extend the last date of buyback on June 27 yesterday.
The company's board had approved the buyback proposal of up to 26,96,62,921 equity shares, constituting 4.91 percent of the total paid-up equity shares for an aggregate amount not exceeding Rs 12,000 crore at a price of Rs 445 per equity share.
As per the rules, it is necessary to keep the buyback open for 5 working days. Wipro opened the buyback on June 22, which according to the rule was to be closed tomorrow i.e. June 29, but yesterday the stock market is closed due to the Bakrid festival, due to which Wipro has extended the last date to June 30.
After the buyback is over, July 4 has been fixed as the last date for verification by the registrar for the buyback of Wipro. Further, the date for acceptance/non-acceptance of tendered equity shares by the registrar to the stock exchanges has been fixed as July 6.
At the same time, July 7 has been fixed as the last date for the disposal of bids. Where the return of equity shares is inadmissible to eligible shareholders/stock brokers; The consideration will be paid to the eligible shareholders participating in the Buyback Offer.
Through the buyback, Wipro will be able to pass on surplus cash to shareholders holding its equity shares in proportion to their shareholding, thereby enhancing the total return to shareholders.
Also, the buyback will help Wipro improve financial ratios such as earnings per share and return on equity by reducing its equity base.
On Wednesday, June 28, the shares of the company are trading on the red mark till the news is written. The company's shares are trading at Rs 381, down 0.17 percent on the NSE.