Wipro share buyback to open on June 22: Check key details here

IT firm Wipro on Tuesday announced its Rs 12,000 crore share buyback would open on Thursday, June 22. The buyback offer would conclude on June 29, the technology services company told the exchanges. The company plans to buyback 26.96 crore shares or 4.91 percent of the total paid up equity share capital of the company through the tender offer route.

As per the provisions of the buyback regulations, the IT firm will pay gross amount, i.e., number of equity shares accepted multiplied by the buyback price of Rs 445 per share for the accepted shares to the clearing corporation of the stock exchanges. Eligible Shareholders whose shares have been accepted under the buyback will directly receive the consideration from the clearing corporation/stock broker.

To recall, the Wipro board had approved the share buyback on April 27 and the record date for the same was June 16. At Tuesday's price, the buyback price of Rs 445 was at a 16.49 per cent premium to the prevailing price of Rs 382.

Wipro has reserved 15 per cent, or 4 crore shares, for retail investors, amounting Rs 1,800 crore.  The actual buyback entitlement factor for small shareholders under the reserved category is 23.396 per cent and for other shareholders under the general category is 4.312 per cent.

Aamar Deo Singh, Head Advisory at Angel One anticipated the acceptance ratio to reach 40 per cent for the retail segment. 

The Bengaluru-based IT firm is looking to buy back up to 26,96,62,921 shares of face value Rs 2 each on a proportionate basis, by way of a tender offer, at a price of Rs 445 per equity shares.

Wipro share buyback history

Wipro last came up with a Rs 9,500 crore share buyback in 2020. The company had bought back 23.75 crore shares at Rs 400 apiece back then. As per data available with AceEquity, the IT major announced about the completion of the extinguishment of shares on January 21, 2021. Before this, the company came out with a Rs 10,500 crore share buyback in 2019. The buyback offer size was 32.31 crore shares, which were bought back at Rs 325 per share. Wipro had announced a Rs 11,000 crore share buyback in 2017. That time, the company had offered to buy back 34.37 crore shares at Rs 320 apiece. The buyback shares represented 7.06 per cent of the total paid-up share capital then.

Prior to that, Wipro came out with a Rs 2,500 crore share buyback in 2016. A total of 4 crore shares were offered to be bought back at Rs 625 apiece then. Further, Wipro announced bonus issue in the ratio of 1:1 in 2017 and 1:3 in 2019.

Separately, shares of Wipro returned to the positive territory today, snapping their three-day fall.

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