Wipro had recently announced a massive Rs 12,000 crore share buyback via a tender route planning to buy back shares at Rs 445 per share from investors. The board of the IT major has approved a buyback of up to 26.97 crore equity shares, amounting to 4.91% of the total number of equity shares. The board is yet to fix a record date for the same.
The shares of Wipro Ltd closed at Rs 387 today, up Rs 1.35 or 0.32% from yesterday’s closing price. Hence, the buyback price is around 15% higher than the current market price, which may be a good opportunity for investors according to analysts.
In a tender offer, the price is usually fixed at a premium and investors having shares of the company on record date can part with their shares by filling out respective forms over a given period.
Wipro is one of the leading global IT Companies, with operations in IT Services, IT Products, Consulting, Business process services companies and India State Run Enterprise. It was incorporated in 1945 as Western India Vegetables Product Limited. It was a consumer care product manufacturer till 1980 after which it diversified into the IT services business.
The business demerged its other divisions (consumer care and lighting, medical equipment, and infrastructure engineering) into a new company called Wipro Enterprises Limited (WEL) on April 1, 2012.
The promoters of Wipro, who own about 73% of the company, are expected to participate in the repurchase offer. The record date, timescales, and other elements of the offer have yet to be revealed by the firm.
Wipro’s promoter and promoter group ownership was 72.92% as of March 31, 2023. Foreign investors owned around 53.67 crore equity shares or 9.78% of Wipro.
This will be the fifth buyback by Wipro in the last seven years. Before this buyback, Wipro announced a Rs 9,500 crore buyback in 2020, a Rs 10,500 crore buyback in 2019, a Rs 11,000 crore buyback in 2017 and Rs 2,500 crore buyback in 2016.