Wipro issues buyback norms for ADS holders

IT major Wipro Wednesday said its ADS holders can participate in Rs 10,500 crore-buyback programme by becoming a direct shareholders prior to the record date of June 21.

Earlier this week, Wipro had announced June 21 as the record date for its buyback programme.

"In order for a holder of ADS' (American Depositary Shares) to participate in the buyback, such holder will need to become a direct shareholder of the company prior to the Record Date," Wipro said in a BSE filing.

It further stated that "to have the chance to become a direct shareholder of the Company prior to the Record Date", holders will need to submit their ADS' for cancellation and withdrawing the underlying equity shares before noon of June 17, 2019.

The company's American Depositary Shares (ADS), each representing one equity share, are traded on the US on the New York Stock Exchange.

Wipro said its Board and shareholders have approved the proposal to buyback up to 32.3 crore shares at a price of Rs 325 apiece on a proportionate basis through the tender offer process.

The buyback size constitutes 23.03 per cent of the aggregate of fully paid-up equity share capital and free reserves of the company as per its audited standalone balance sheet as on March 31, 2019, it added.

"The Buyback will be conducted on a proportionate basis through the tender offer route ... from all holders of Equity Shares who hold equity shares as of June 21, 2019, the record date for the Buyback (the Record Date)," it added.