Wipro has announced it will buyback 40 million shares at a premium of Rs 625 per share. The buyback accounts to 1.62% of the total shares outstanding. The buyback will cost Wipro Rs 2500 Cr. The share buyback will be on proportionate and tendering basis. Wipro has announced May 6 2016 as the record date for share buyback in its BSE filing. The shareholding pattern of Wipro as filed in BSE for March 2016 is as follows: The announcement also stated the promoters are also willing to participate in share buyback. What does this mean? The share buyback is done on proportionate and tendering basis. It means that if you own 10000 shares and you are willing to tender all your shares, then only 162 shares of yours will be bought by the company. Which is a small amount. But if you see from the promoters angle, Azim Premzi and his family owns 73.34% shares, so out of the 40 million shares to be bought back, maximum will be bought from promoters.… (Read On…)
[via Capital Mind]
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