Wipro surges 5 5 percent on share buyback decision

Shares of India's third largest IT company Wipro surged over 5.5 per cent on the bourses today on the back of the company's decision to consider a buyback of equity shares in their board meeting next week.

However, the company did not disclose the size of the buyback.

The company's board meeting is scheduled be held on 19 and 20 July 2017 to consider Wipro's first quarter results.

"Wipro Ltd has now informed BSE that the Board will consider a proposal for buyback of equity shares of the Company on July 20, 2017," the company said in a filing to the stock exchange on Friday.

If the decision follows through, it will be the second time in many years that the home-grown IT giant will buy back shares.

It will also join the likes of Infosys, Tata Consultancy Services and Cognizant that have announced buyback offers to return surplus cash on their books to their shareholders.

The Infosys board has already identified an amount of up to Rs 13,000 crore ($2 billion) to be paid out to shareholders during financial year 2018, through dividend and share buyback.

TCS has already completed a Rs 16,000 crore buyback programme earlier this year.