Wipro share price has fallen over 3% since the announcement of share buyback news.(REUTERS)AI Quick ReadWipro buyback: IT giant Wipro announced its biggest-ever share buyback on 16 April, worth ₹15,000 crore. The company had announced the buyback along with its March quarterly financial results.
In an exchange filing, Wipro said that the board has approved the proposal to buyback up to 60,00,00,000 fully paid-up equity shares—equivalent to 5.7% of its total paid-up equity capital—for a maximum consideration of ₹15,000 crore, subject to shareholder approval.
“The Buyback is proposed to be made from the existing shareholders of the Company (including persons who become shareholders by cancelling American Depository Receipts and receiving underlying equity shares) as on the record date on a proportionate basis under the tender offer route,” the company said in the filing.
The buyback price has been set at ₹250 per share. The repurchase will be carried out through the tender offer route, on a proportionate basis, from existing shareholders as of the record date.
The company is yet to announce the record date for the buyback. "The process, record date, timelines and other requisite details with respect to the Buyback will be set out in the public announcement and the letter of offer to be published in accordance with the Buyback Regulations,” it added.
Given the tepid share price performance of Wipro, investors might be wondering if they should participate in the offer, as it has scope to offer decent returns. From the last close, Wipro's buyback price is at a 23.5% premium. However, the decision is not so straightforward.
Tushar Badjate, Director of Badjate Stock shares, believes that Wipro’s largest-ever buyback offers a generous premium. He recommended short-term holders with limited conviction to consider exiting at this price, as near-term upside remains constrained amid a steep decline in shares in 2026.
On the other hand, he suggested long-term investors consider holding the counter, as the buyback itself signals Wipro’s confidence in its AI-led recovery and strong cash position.
“Either way, watching the acceptance ratio closely shouldn’t be ruled out. With promoters participating, retail allotment will be proportionately smaller than most expect,” he added.
Seema Srivastava, Senior Research Analyst at SMC Global Securities, highlighted that the proposed buyback by Wipro Limited at ₹250 per share offers a structured arbitrage opportunity for investors, particularly retail participants, given the current market price of ₹205, implying a notional upside of ~22%. However, actual gains depend significantly on acceptance ratios and execution.
Srivastava further recommended retail investors to consider participating as a tactical opportunity with controlled allocation and exit planning, while general investors face lower acceptance (6%) and hence weaker risk-reward.
“The trade remains conditional, not risk-free, and sensitive to post-buyback price behaviour,” she added.
Wipro share price has fallen by over 3% since the announcement of the share buyback. On Tuesday, the IT stock was trading 1.59% higher at ₹205.70 apiece on NSE.
Wipro stock has remained volatile amid weak market sentiments. The stock has delivered 7% gains in a month, as compared to Nifty's rise of 6.25%. The IT stock has shed 23% on a year-to-date (YTD) basis and 14.22% in a year.
Looking at a longer time frame, Wipro shares have given moderate returns of 11% in three years; however, they have declined by 13% in the last five years.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
Vaamanaa covers business and stock market news. Started in 2020, she has been producing news on digital platforms for over 4.5 years now. She writes on markets, commodities, IPOs, and industry. She has worked for news channels like Jagran New Media and Business Insider India. You can reach out to her at vaamanaa.sethi@htdigital.in.