Wipro share Buyback: Tender offer window is open from 22nd June to 29th June

Tanushree Jaiswal 20th June 2023 - 03:52 pm

Wipro, the IT major, is set to launch its ₹12,000 crore share buyback program on June 22, concluding on June 29. This buyback comes after a gap of over two years and has garnered significant interest from shareholders. Wipro intends to repurchase 269,662,921 shares, amounting to 4.91% of the total equity shares, via the tender route.

Promoters and the promoter group, who hold a majority stake in the company, have expressed their intent to participate in the buyback. Analysts expect Wipro's acceptance ratio in the 40-60% range, while the previous buyback saw nearly 100% acceptance. Retail investors have shown consistent acceptance rates of 50-100% in the last four buybacks. This indicates strong interest and suggests a favorable response to the current buyback.

Wipro's stock witnessed a slight increase after the announcement, trading higher at ₹383.20 on the BSE. The buyback offer price of ₹445 per share represents a 17% premium to the current market price. Overall, the buyback is expected to generate a positive response, given the company's strong financial position and attractive pricing.

This marks Wipro's fifth buyback in its history, and analysts project a decent acceptance ratio, particularly in the retail category. Despite a decline in share price over the past year, the buyback presents an opportunity for shareholders to benefit from the premium price.

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Tanushree Jaiswal

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