IT services major Wipro on Thursday informed the exchanges that it will be considering a buyback of shares along with its fourth quarter results. The company will release its earnings on April 16. The announcement of buyback comes after a steep fall in its stock price, which is down over 20% already this year.
The buyback also comes at a time when some investors have questioned IT companies’ strategy to return cash to shareholders as against investing in newer technologies like AI.
The proposal, if approved, will involve repurchasing shares from shareholders in line with applicable rules.
While details such as the size of the buyback, price and route have not yet been disclosed, the move signals potential capital allocation action by the company at a time when sentiments in IT stocks volatile, even though valuations have corrected.
More to come…
