Wipro to consider buyback on April 27

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One of India’s pioneering IT companies, Wipro, will be considering a proposal for the buyback of equity shares this week. The IT giant’s board of directors will be holding a two-day meeting to announce the fourth quarter results for FY23 and consider other key developments. Wipro said this in a regulatory filing on Sunday. It is also scheduled to announce Q4FY23 numbers on the last day of the meeting which is April 27.

First after 2021

The buyback announcement will also take place on the same day. This would be the first buyback since January 2021. The last buyback that Wipro carried was ₹9,500 crore between December 29, 2020, to January 11, 2021. During this buyback, Wipro tendered 22.89 crore equity shares, accounting for 96.38% of the total buyback size, aggregating to ₹9,156 crore.

Before this, Wipro had launched a buyback programme of ₹10,500 crore between August 14 to August 28, 2019. Any dividend announcement from Wipro will also be keenly watched during the two-day meeting since its peers HCL Tech, TCS and Infosys have recommended dividends during their Q4 announcement day.

Market watching results

The announcemengt of results will also be an important indicator for the sector. Two of the biggest IT companies in India, TCS and Infosys, have come out with results which have been below market expectations. The stock of Infosys hit a 52-week low after the announcemengt of the results. On the other hand, the results of HCL Technologies were almost as per market guidelines.

Wipro has been in the news lately for deferring onboarding of fresh recruits. It offered onboarding if the fershers took a pay cut from Rs 6.5 lakh to Rs 3.5 lakh. Later it decided to hold a test for the freshers. The new joinees have been asked to take the test and those securing 60% score would only be considered for onboarding.