Wipro, Indian multinational corporation that specializes in information technology, consulting, and business process services, is set to announce its Q4 results today along with a proposed share buyback program.
With Tata Consultancy Services (TCS) and Infosys both missing street estimates in their Q4 results, investors are cautious about Wipro’s performance. The big question on everyone’s mind is whether the proposed buyback program will prevent a further drop in Wipro’s share price, which has declined by over 27 percent in the past year.
Outcome of the Wipro Board Meeting
Wipro’s two-day board meeting began yesterday, during which they were expected to consider a proposal for a share buyback program. The outcome of the board meeting will be announced today along with the Q4 results.
In a statement to the stock exchanges, the company earlier said, “The outcome of the Board meeting will be communicated to the stock exchanges soon after the conclusion of the Board meeting on April 27, 2023.”
Wipro stocks dip by 27 percent in one year
Wipro’s share price has been on a downward trend for the past year, with the stocks dipping by over 27 percent. In the current year alone, the stocks have dropped by over four percent.
This decline is a cause for concern for investors, and the announcement of the buyback program is being seen as a potential solution to stabilize the share price.
Wipro’s past performance and share buyback program history
Wipro has a history of using share buyback programs. In 2021, the company bought back shares worth Rs 9500 crore at an offer price of Rs 400 per share. In 2019, it bought back shares worth Rs 10500 crore at an offer price of Rs 325 per share.
When it comes to declaration of the earnings, the reactions of the investors have been mixed in the past. Wipro’s shares traded in the red on the next day of the earnings declaration in six out of 13 quarters since 2020.
