The board of directors of India's third largest software exporter Wipro will consider a proposal to buy back shares of the company on April 20, the day the company announces its March quarter results.
Last year, the Securities and Exchange Board of India (SEBI) passed a regulation on share buybacks as part of which tendering of shares through the stock exchange are now allowed.
This has allowed and encouraged listed companies to consider options such as share buybacks, which basically reduce the number of outstanding shares and increases the value of shares owned by existing shareholders.
"With reference to the earlier announcement dated March 29, 2016 regarding intimation of Board meeting to be held over April 19-20, 2016, Wipro Ltd has now informed BSE that the Board of Directors will consider a proposal for buyback of equity shares of the Company on April 20, 2016," Wipro said in a filing to stock exchanges on Tuesday evening," Bangalore-based Wipro said.
A Wipro spokesperson said that the company would share more details of the buyback if the proposal is approved by the board after it concludes the board meeting on April 20.
"Wipro Limited has always strived to enhance shareholder value for its investors. The Board is considering a proposal of share buy-back as part of the agenda for the meeting scheduled on April 19 and 20, 2016. The proposal is in line with the company's philosophy to provide regular, stable and consistent returns to shareholders," a Wipro spokesperson said.
"If approved by the Board, more details of the buyback will be disseminated to the stock exchanges after the conclusion of the Board meeting," he added.