Wipro stock climbs over 3% after IT major announces share buyback

The share price of IT major Wipro rose over 3% on Friday, after the company's board announced a share buyback of up to Rs 12,000 crore.

Wipro on Thursday posted a 0.4 per cent decline in its consolidated net profit to Rs 3,074.5 crore for the March 2023 quarter and guided for a 1-3 per cent sequential decline in revenue from IT services business in the June quarter amid a weak macro environment.

The Wipro board approved the buyback of 26.96 crore equity shares at a price of Rs 445 apiece. The buyback price is at an 18 per cent premium to Thursday's closing price of Rs 374.35 a share on BSE.

Bengaluru-headquartered Wipro - which competes in the IT services space with larger rivals like Tata Consultancy Services (TCS) and Infosys - posted a net profit of Rs 3,074.5 crore for the just-ended quarter, against Rs 3,087.3 crore in the year-ago period.

The revenue for March 2023 quarter stood at Rs 23,190.3 crore, 11.17 per cent higher year-on-year, according to the filing.

For the full FY23, the net profit of Rs 11,350 crore was 7.1 per cent lower than the preceding fiscal, while revenue of Rs 90,487.6 crore was 14.4 per cent higher.