The Wipro board on April 16 approved a buyback for up to 32.3 crore shares at Rs 325 per share totalling up to Rs 10,500 crore.

Wipro has approved a proposal to buy back up to 32,30,76,923 equity shares being 5.35 percent of the total paid-up equity share capital, at a price of Rs 325 per share, the company said in a release to the exchange.

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The IT major had last conducted a buyback in November 2017. Its last buyback was for shares worth Rs 11,000 crore at Rs 320 per share.

Addressing media persons, Jatin Dalal, Chief Financial Officer, said, "Our rigour in execution and focus on improved quality of revenues has resulted in operating margin expansion of 1.8 percent for the year. Our operating cash flows were robust and 129.2 percent of our net income for the year. The announcement to buy back equity shares is part of our philosophy to deliver efficient returns to our shareholders."

"We have had a very good year of cash, close to $1 billion in terms of cash flow in our balance sheet and therefore, we think the time is right to go for the buyback. That is how we have given Rs 10,500 crore. The payout ratio is 123 percent and is a healthy mark by any standard in the industry," he added.

As per SEBI guidelines, a company can buy back its shares only once in 12 months. A company is not allowed to make any offer of buyback within a period of one year reckoned from the date of expiry of buyback period of the preceding buyback offer if any, as per rules.

In the last few years, IT majors like Tata Consultancy Services (TCS), Cognizant Technology Solutions, HCL Technologies and Mindtree have all announced share buybacks.

The buyback is at a premium of 15.4 percent to its closing price of Rs 281.6 on the NSE on April 16.