Wipro has announced June 5 as the record date for its Rs 15,000 crore share buyback, allowing only those shareholders with shares in their demat accounts by this date to participate. Investors must purchase shares by June 4 to ensure eligibility, adhering to SEBI's T+1 settlement norm.
The IT giant had earlier declared a buyback at Rs 250 per share, offering a 22.5% premium over the last closing price of Rs 204 on NSE. This marks Wipro's first buyback in nearly three years, with plans to repurchase up to 60 crore shares, representing 5.7% of its total paid-up share capital.
The buyback will proceed via the tender route, and all shareholders on the record date, including those converting American Depository Receipts (ADR) to equity shares, are eligible. Promoters and promoter groups have expressed their intent to participate.
HDFC Securities suggests two scenarios for retail investors. A conservative estimate assumes a 45-50% acceptance ratio, offering an 8-9% net return over 2-3 months. An aggressive scenario predicts a 70-80% acceptance ratio, potentially yielding a 13-14% net return.
Motilal Oswal Wealth Management anticipates a 50-60% acceptance ratio, projecting an 11-13% pre-tax return over 2-3 months. Wipro shares have shown modest gains recently but are down 24% in 2026.
Background
Wipro's decision to conduct a share buyback is part of a broader strategy often employed by companies to increase share value, utilize surplus cash, and potentially fend off hostile takeovers. The move comes amid a volatile market environment, offering investors a structured opportunity to realize returns.
As Wipro prepares for this significant buyback, investors should monitor acceptance ratios and market conditions closely to optimize their returns.
