Wipro shares climb nearly 4% after share buyback announcement

Shares of “Wipro” jumped nearly 4 percent in morning trading on Friday after The company’s board of directors announced share buybacks amounting to ₹12,000 crore.

The stock jumped 3.64 percent to ₹388 on BSE. On the NSE, it gained 3.63 percent to $388.

He was the biggest winner in both Sensex and Nifty.

the Wipro board On Thursday, it announced the buyback of shares amounting to ₹12,000 crore through the tender offer route, which entails ₹26.96 crore shares of shares at a buyback price of ₹445 apiece.

The buyback price is at a premium of 18 per cent over Thursday’s closing price of INR 374.35 per share on the Bahrain Stock Exchange.

Wipro recorded a decline of 0.4 percent in its consolidated net profit to ₹3,074.5 crore for the March quarter 2023 and guidance for a sequential decline of 1-3 per cent in revenue from its IT services business in the June quarter amid a weak macro environment.

Wipro’s Q4 2023 presentation was muted as the company reported a net profit of Rs 3,074.5 crore, down 0.4 percent year-on-year. Revenue increased by 11.7 per cent YoY at INR 23,190.3 crore.

Wipro CEO and Managing Director Thierry Delaporte spoke of softness in banking, financial services, FMCG and retail due to the current macro environment, but emphasized that there are no drastic changes in deal cycles, no reduction in deal sizes or cancellations. He said the inflows are limited to discretionary spending.

“In fact, we’re seeing more great deals coming our way, and we’re in the process,” Delaporte said in the earnings release, where he expressed optimism about the company’s ability to win deals.

“Wipro reported direct revenue and operating performance but presented a weak outlook for the first quarter of fiscal ’24,” according to a report by financial institutions, HDFC Securities.