Wipro founder Aziz Premji
Wipro founder Aziz Premji

IT services major Wipro has announced a share buyback offer which experts believe is at a 10% premium.

Wipro on Thursday released the letter of offer and tender form related to its Rs9,500cr buyback programme which will open next week.

Even before the announcement, the shares of Wipro gained nearly 3% the day before. There could be a further rally of 10%, given that the market will rush to price in the premium before the buyback offer opens on December 29, industry experts say.

Wipro's buyback will be available till January 11, 2021. The last date for settlement of bids is January 20, 2021.

In its letter of offer, Wipro said, members of the Promoter and Promoter Group have expressed their intention vide their letters dated October 13, 2020, to participate in the Buyback and may tender up to an aggregate maximum number of 4,14,54,12,501 Equity Shares or such lower number of shares in accordance with the provisions of the Buyback Regulations/terms of the Buyback.

At present, the Promoter and Promoter Group hold 4,22,99,45,033 equity shares or 74.01% of the Equity Shares in the total outstanding equity share capital of Wipro.

Of the total shareholding, Azim H Premji is the largest shareholder with 23,68,15,234 equity shares or 4.14% in Wipro.

Wipro's buyback involves 23.75cr equity shares representing up to 4.16% of the total issued and paid-up Equity Share capital of the Company. A floor price of Rs 400 per equity share is set which is currently at a premium compared to the market price.

Last year, Wipro had undertaken a buyback programme of 32.31 crore shares at Rs 325 apiece, amounting to about Rs 10,500 crore. Previously, it had announced a buyback worth Rs 11,000 crore in 2017, and Rs 2,500 crore in the year 2016.

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