India's third-largest IT exporter Wipro has extended the closing date for its Rs 12,000 crore-share buyback programme, the largest in its history, by one day to Friday (June 30) instead of June 29. The issue opened on June 22. The Bengaluru-based firm has extended the closing date as the stock market will remain closed for trading on Thursday (June 29) on the eve of Bakri Eid, instead of Wednesday.

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"On account of change in working day from June 29, 2023 to June 28, 2023, SEBI vide its email dated June 27, 2023 has allowed extension in the tendering period by 1 (one) working day. Accordingly, the buyback closing date will be Friday June 30, 2023 instead of Thursday, June 29, 2023," Wipro said in its filing to the exchanges.

The IT major further noted that eligible shareholders will be able to tender in the share buyback on June 28 and June 30, 2023.

According to the guidance, a buyback is required to be kept open for five working days, and thus, the buyback closing date was set on June 29 since June 28 was a public holiday.

"In addition to placing the bid through the stock broker, eligible shareholder’s holding equity shares in physical form should submit the duly filled in and signed tender form, TRS, and requisite documents to the registrar to the buyback before 5 pm on Friday, June 30, 2023," Wipro said in a filing.

The Nifty company will buy back about 26.97 crore equity shares, being 4.91 percent of the total paid-up equity shares, at a price of Rs 445 through the tender route, which is at a 16 percent premium over Wednesday's price of Rs 382.5.

The buyback will lead to the extinguishment of 4.91 percent of shares and involves 15 percent reservation for retail shareholders who are defined as those holding shares worth less than Rs 2 lakh.

Small shareholders are eligible to apply for 62 shares for every 265 shares held on the record date, which was June 16. In the general category, the ratio has been fixed at 26 shares for every 603 shares held.

Wipro said the retail entitlement ratio has been fixed at 23.4 percent while for others it is 4.3 percent.

"The buyback is being undertaken by the company to return surplus funds to its equity shareholders, which are over and above its ordinary capital requirements and in excess of any current investment plans, in an expedient, effective and cost-efficient manner," the company stated earlier.

Shares of Wipro were trading 0.42 percent higher at Rs 382.50 apiece in Wednesday's morning deals. The stock has fallen 1.11 percent in the previous five trading sessions. On a year-to-date basis, the stock has tumbled 2.68 percent, while it fell over 10 percent in the last one year.

First Published:Jun 28, 2023 10:53 AM IST