Wipro Ltd. on Thursday approved Rs 15,000 Crore buyback, with the promoter group intending to participate, the IT giant said in an exchange filing. The participation of the promoter group comes after they did not participate in the Rs 18,000-crore share buyback announced last year.
According to one of India's largest software services exporter, buyback is expected to completed in the first quarter of fiscal 2027, with the company looking to acquire the shares at Rs 250 per piece. The buyback price is at a premium of 19% to Thursday's close of Rs 210 per share.
The proposed buyback announcement was expected to be between Rs 16,000 crore to Rs 18,500 crore, based on past trends, according to brokerages tracked by NDTV Profit.
The buyback will be done via the tender route and all shareholders on the record date will be eligible to take part in the corporate action. This also includes all those who received the equity shares after cancelling their American Depository Receipts (ADR).
What's In It For Retail Shareholders?
From the announced buyback 15% or 9 crores is reserved for retail shareholders.
With the promoters and the promoter group intending to tender offers during the buyback, the entitlement ration 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.
It's also important to note that gains for retail shareholder completely depends on acceptance ratio. For those not aware, acceptance ratio is how many shares company actually bought back. In past 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%.
So if the acceptance gains is 25% then retail shareholders could see a gain of 4.8%, however if it is at 50% then the acceptance gains will be at 9.5%. With an acceptance gain of 75% retail shareholders can expect gains of 14.3% and a 100% acceptance gain could lead to gains of 19%.
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Market History
Morgan Stanley said Wipro shares have often responded after buyback announcements.
"During the past five buybacks, Wipro has outperformed the Sensex post a formal buyback announcement in four out of five instances over one week, and in three out of five instances over one month," the brokerage said.
It added that any near-term move after an announcement could later give way to a renewed focus on operating performance and earnings delivery.
Wipro Q4 Results
Wipro's net profit for the fourth quarter of FY26 went up over 12% sequentially, as per an exchange filing on Thursday.
The IT giant registered a consolidated bottom-line of Rs 3,501 crore, compared to Rs 3,119 crore in the previous quarter. Analysts on Bloomberg had estimated net profit at Rs 3,426 crore.
Revenue went up 3% to Rs 24,236 crore, compared to Rs 23,556 crore in Q3 of fiscal 2026, meeting analysts' estimate of Rs 24,252 crore.
Wipro clocked a strong 19.7% rise in its earnings before interest and taxes (EBIT) to Rs 4,181 crore, from Rs 3,491 crore in the quarter ended Dec. 31, 2026. EBIT margin jumped to 17.3% from 14.8% in Q3.
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