- Wipro's Rs 15,000 crore buyback began on June 11 via tender route at Rs 250 per share
- Buyback includes shareholders on record date June 5, including ADR cancellation recipients
- Small shareholders get 11 shares per 56 held, general category 10 shares per 197 held
Wipro's Rs 15,000 crore buyback has opened today, June 11. The IT giant has planned to buy back around 60 crore shares at Rs 250 per share from eligible shareholders.
The corporate action will be done via the tender route and all shareholders on the record date will be eligible to take part in it. This also includes all those who received the equity shares after cancelling their American Depository Receipts (ADR). The record date for buyback was set on June 5. This means that the shareholders who own Wipro shares till this date are eligible to participate in the offer.
A buyback of shares also known as share repurchase is a corporate action where a company buys back its own outstanding shares from existing shareholders.
With the promoters and the promoter group intending to tender offers during the Wipro buyback, the entitlement ratio for retail investors may decrease. As on December 31, 2025, promoters and promoter group of the company held 72.63% stake in the company, showed BSE data.
What To Know About Wipro Buyback?
As per Wipro's offer, shareholders in the reserved category for small shareholders will get 11 equity share for every 56 shares held on the record date. While, general category for other eligible shareholders are entitled to 10 equity share for every 197 equity shares held on the record date. Shareholders can participate in the offer till 5 pm on June 17.
Notably, in the last five trading sessions, Wipro stock fell more than 9%, while it has dropped over 30% in six months.
How Much Could Shareholders Gain? Key Factors To Consider
Gains for retail shareholder depends on three factors such as premium, acceptance ratio and residual benefit, according to Harshal Dasani, Business Head at INVAsset PMS.
He said that the Indian IT buybacks have historically come at premiums in the range of 10% to 20% over the prevailing market price. Shareholders can expect a similar band with Wipro buyback.
In terms of acceptance ratio, which describes the shares company actually bought back is also a key factor to determine gains made by shareholders. "Those holding shares worth up to roughly two lakh rupees, typically sit in a reserved category with a meaningfully higher acceptance ratio than the general category, sometimes near 100 percent of tendered shares. Larger holders see a more modest acceptance proportion," he said.
Historically, acceptance ratio has been in the range of 53%-100%. However, if all retail shareholders participate, then acceptance ratio could be as low as 25%. Based on assumption of Rs 204 per share as cost price, if the acceptance gains is 25% then shareholders could see a gain of 5.6%, however if it is at 50% then the acceptance gains will be at 11.3%. With an acceptance gain of 75% shareholders can expect gains of 16.9% and a 100% acceptance gain could lead to gains of 22.5%, according to NDTV Profit data.
The third factor is the residual benefit on un-tendered shares, where the lower share count post-buyback delivers a small EPS uplift, typically in the low single digits depending on the size of the buyback relative to outstanding equity, according to Dasani. "The honest qualifier is the post-2024 buyback tax framework, which has shifted the tax incidence onto shareholders, materially reducing the net realised gain compared with the older regime. The buyback is a useful event for retail holders in the reserved category but warrants modest expectations elsewhere," he said.
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