After industry leader Tata Consultancy Services, IT services firm Wipro is also considering to go for a share buyback. The Bengaluru-headquartered firm said in a filing with the stock exchanges on Wednesday that the company’s Board of Directors in its meeting scheduled on October 13 would consider a proposal of buyback of equity shares.
Wipro is the second large Indian IT services firm to consider a buyback programme after market leader TCS announced one. TCS in its board meeting held on Wednesday also approved to proposal to go for a Rs 16,000 crore buyback programme at Rs 3,000 a piece.
Typically, the share buyback programme of a company reflects the belief of its management over the growth prospects of a company. During the ongoing Covid-19 pandemic, the export-oriented IT services industry in the country have largely remained resilient though they have seen some impact in sectors such as hospitality and aviation.
While TCS which announced its Q2FY21 results on Wednesday showed better than expected numbers, Wipro is announcing its numbers next week. The company which in the previous quarter announced former Capgemini top executive Thierry Delaporte as its new CEO & MD, is looking at improving its performance in coming quarters.
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