Wipro to consider share buyback proposal, decision on 13 Oct board meeting

Wipro is the second mega Indian IT services firm to consider a buyback programme after market leader TCS

IT services firm Wipro is considering to go for a share buyback programme, following a similar move by industry leader Tata Consultancy Services (TCS). 

The Bengaluru-headquartered firm, in a filing with the stock exchanges on Wednesday, said the company’s board of directors, in its meeting scheduled on October 13, would consider equity share buyback proposal. 

Wipro is the second-largest Indian IT services firms to consider a buyback programme. TCS, in its board meeting held on Wednesday, approved to proposal to go for a Rs 16,000-crore buyback programme at Rs 3,000 a piece.

Typically, the share buyback programme of a company reflects the belief of its management over the growth prospects of a company. During the ongoing Covid-19 pandemic, the export-oriented IT services industry in the country largely remained resilient though they have seen some impact in sectors such as hospitality and aviation.

While TCS, which announced its Q2FY21 results on Wednesday, showed better-than-expected numbers, Wipro slated to announce its numbers on October 13. 

The company, which in the previous quarter announced former Capgemini top executive Thierry Delaporte as its new chief executive officer and managing director, is looking at improving its performance in coming quarters.