Source : INDIA TODAY NEWS
Shares of Wipro Ltd rose as much as 3% in early trade on the Bombay Stock Exchange after the company said its board will consider a share buyback proposal at its April 16 meeting.
The stock had initially surged on the buyback trigger but gave up most of its gains as weakness across IT stocks weighed on sentiment following Tata Consultancy Services results.
advertisement
At 9:52 am, the stock was trading at Rs 204.15, up Rs 1.25 or 0.62%.
BUYBACK PLANS LIFT SENTIMENT
Wipro has informed exchanges that its board will evaluate a share buyback alongside its fourth-quarter results on April 16, bringing the focus back on shareholder returns.
The announcement comes after a weak run for IT stocks and a decline in Wipro’s share price this year, making the buyback a clear sentiment booster.
Market expectations suggest the buyback could be sizeable and may be offered at a premium to the current market price, which typically attracts investor interest.
WHAT IS A BUYBACK?
A buyback is when a company repurchases its own shares from shareholders, either through a tender route or the open market. By reducing the number of shares outstanding, it improves earnings per share and can support valuations.
In Wipro’s case, the move signals management confidence at a time when growth visibility in the IT sector remains moderate. It also reflects the company’s strategy of returning excess cash to shareholders, backed by a strong balance sheet.
At the same time, the partial reversal in gains highlights the broader pressure on IT stocks after TCS results, suggesting that while the buyback offers near-term support, sector-wide sentiment will continue to influence the stock’s trajectory.
There is no final decision yet on the size or pricing of the buyback. Those details will be announced after the board meeting, keeping the stock in focus in the near term.
– Ends
Must Watch
SOURCE :- TIMES OF INDIA
