Shareholders of NYSE-listed Wipro [Get Quote] including its chairman Azim Premji with his 81 per cent holding, can expect rich windfall as the soap-to-software maker is considering "generous" dividend payouts from its approximate $1 billion cash reserves."We have one billion dollar in cash reserves .. we plan to give more generous dividends to the shareholders than over the past two years but under the broad outline of the company's dividend policy", Premji said.
Wipro may pay shareholders between 10 percent and 15 percent of its free cash flow as dividends, from between 3 percent and 4 percent previously.
However the entire reserves would not go towards the payouts as Premji said part of the reserves would be utilized in funding acquisitions.
"We are looking at mid-sized companies of $25-$100 million companies in US, Europe and domestic also. We are interested in acquiring companies with specialised verticals like retail..in certain geographies like continental Europe", he said.
For the year 2004-05, the board of Wipro had recommended dividend of Rs 5 a share (250 per cent on par value), despite a bottomline growth that fell short of market expectations.
The company had also declared a one-time special dividend of Rs 25 on the eve of crossing the billion-dollar revenue mark in addition to the regular dividend.
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