Wipro Buyback Opens at Rs 250 per Share
Wipro started its Rs 15,000 crore share buyback on Thursday. The company will buy back up to 60 crore shares. This equals about 5.7% of its total equity. Eligible shareholders will receive Rs 250 for each share. The market price sits below Rs 180.
The offer runs from June 10 to June 17. June 5 was the record date. Only shareholders who held stock on June 5 are eligible.
Key structure and eligibility:
- Small shareholders with holdings under Rs 2 lakh on the record date will tender 11 shares for every 56 shares held.
- General shareholders will tender 10 shares for every 197 shares held.
- Promoters and promoter group entities plan to participate.
Process and timeline:
- Eligible shareholders place bids through brokers on BSE or NSE using a separate buyback window.
- The registrar will verify tendered shares by June 19.
- Final acceptance or rejection will come by June 23.
- Payments and unaccepted shares will be processed by June 24.
- Investors should keep demat accounts active and bank details linked.
Analyst views: Sunny Agrawal of SBI Securities said retail investors in the small shareholder category should tender full holdings. He expects an acceptance ratio near 21%. This means a gain of roughly Rs 70 per share over market levels. The return equals about 7% to 8%.
Harshal Dasani of INVasset PMS said only a portion of tendered shares will be accepted. Those accepted will be bought at a fixed premium. He warned returns depend on post-buyback stock performance.
Risk factors: Analysts said the main risk involves unaccepted shares. If the stock falls after the buyback, the overall benefit will drop. Dasani called this a tactical buyback opportunity. He said it is not a reason to turn structurally positive on Wipro or Nifty IT. The overall return profile stays limited. It depends on acceptance ratios and broader market conditions.