Bengaluru: India's third largest IT firm Wipro on Thursday announced a mega buyback offer of Rs 11,000 crore, joining the growing roaster of IT firms returning surplus cash to their shareholders.


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"The Board of Directors approved a buyback proposal, subject to the approval of shareholders through postal ballot, for purchase by the company of up to 343.75 million equity shares of Rs 2 each (representing 7.06 per cent of total equity capital)," Wipro said in a statement.


The buyback price will be Rs 320 (USD 4.95) per equity share for up to Rs 11,000 crore (USD 1.7 billion), it added.


The company said it will disclose additional information on the terms and conditions of the buyback in due course in accordance with Buyback Regulations.


Share buybacks improve earnings per share and return surplus cash to shareholders while also supporting share price during periods of sluggish market conditions.


As on June 30, 2017, Wipro had 'cash and cash equivalents' of Rs 5,432 crore on its books and 'investments' of Rs 31,772 crore totalling Rs 37,204.


Among Indian IT companies, TCS, which had a cash pile of over Rs 43,000 crore, has already completed a Rs 16,000 crore buyback programme earlier this year.


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