Wipro board to consider share buyback on October 13; stock price up 5.7%

New Delhi, 8-Oct-2020

Shares of IT services major Wipro spiked over 5% on buzz that the company's board will consider share buyback plan on October 13. The stock is currently trading at Rs 354.50 on the NSE, up by Rs 19.10 or 5.7% from its closing levels a day earlier. The stock touch multi-year highs during early trades on Thursday. The Board of Directors will be considering a proposal of buyback of equity shares of the company at the meeting scheduled to be held on October 13, 2020, the company said in a regulatory filing earlier. The development comes on the back of market leader Tata Consultancy Services (TCS) announcing its own Rs 16,000 crore buyback plan at Rs 3,000 per share on Wednesday. Although the buyback amount is in-line with expectations, the price is attractive at a premium of 10% to yesterday's closing price. TCS said its board also approved a proposal buy back up to 5.33 crore equity shares for an aggregate amount not exceeding Rs 16,000 crore. The buyback for 1.42% of the total paid-up equity share capital, will be done at Rs 3,000 per share. IT shares are in focus during the day after TCS posted robust earnings numbers for second quarter. The outcome of the Board meeting will be communicated to the stock exchanges soon after conclusion of the Board meeting on October 13, 2020, it added. Yet another company Majesco Ltd announced its share buyback plan worth Rs 631 crore today. The company�s shares hit an all-time high on Tuesday. The company�s board approved a proposal of buyback of shares worth up to 74,70,540 fully paid equity shares of ?5/- each of the company, representing 25% of the total paid-up equity capital of the company as on September 30, 2020 at a price of Rs. 845.