Wipro Share Buyback 2023 Updated

Wipro Share Buyback 2023

Wipro Share Buyback 2023 | Wipro’s announcement of buyback of Rs. 12,000 crore in 2023. Learn about the floor price, shareholder approvals, and other important information regarding the buyback.

Wipro Share Buyback announcement of Rs. 12000 Crores

One of leading company in Indian IT sector Wipro Limited has announced a buyback of around Rs. 12000 Crores on Thursday 27th April 2023.  The company declared the floor price Rs. 445 per share. The details for the record date, timeline, and other specifics will be announced later.

In the fourth quarter of FY23 Wipro’s financial performance was mixed. That is mainly because of global recession sentiments and layoffs at international technology giants.

Wipro buyback history

Wipro’s last buyback was conducted between December 29, 2020, to January 11, 2021 and which was around Rs. 9500 crore. The proposed buyback is now subject to the approval of shareholders by way of a special resolution through a postal ballot.

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Wipro Buyback Analysis

Opening Date – 22nd June 2023

Closing Date – 29th June 2023

Number of shares to be bought – 26,96,62,921 approximately value 27 crores

Price to be bought at – Rs.445 per share

Current market price of Wipro share is Rs.379 as on 24 June 2023

Premium will get around Rs.66 per share

Important note – For every 3 shares 1 will be accepted.

For example – If you apply for buyback of 100 shares then 30 to 33 will be accepted.

So profit calculation will be Rs.30 x 66 = 1980 on 100 shares.

On the investment of 100 shares of Rs.379 = Rs.37900

Amount we will get around Rs.39880

After the tax deduction and brokerage we can expect around Rs.39500

Important points to highlight of Wipro share buyback 2023

  • The board members of Wipro have approved a proposal to buy back up to 269662921 equity shares, which is around 4.91% of the total paid-up equity shares of the company, aggregating to ₹12,000 crore.
  • The floor price or the reserve price for the buyback of Wipro is Rs. 445 per equity share, which is a premium of 18.9% compared to Wipro’s current market price which is Rs 374.90.
  • Promoter and promoter group members have expressed their intention to participate in the buyback offer.
  • The proposed buyback is subject to approval of shareholders by way of a special resolution through a postal ballot.
  • The process of Wipro buyback will announce the process, record date, timelines and other details of the buyback later.
  • The promoter and promoter group holdings as on March 31, 2023 over 400.19 crore equity shares or 72.92%.
  • Shareholding of the Domestic institutional shareholders is around 15.04 crore equity shares or 2.74% in Wipro, and foreign investor’s shareholding is about 53.67 crore equity shares or 9.78% in Wipro.
  • Indian retail investor, corporates, and others hold 79.89 crore equity shares or 14.56% in the tech giant.
  • In Q4FY23, Wipro had resulted a consolidated net profit of Rs.3074.5 crore, while revenue stood at ₹23,190.3 crore.
  • For the fiscal year FY22-23, Wipro’s PAT is around Rs.11350 crore, down by 7.2% from Rs. 12229.6 crore in the previous fiscal, while revenue jumped by 14.40% to Rs.90487.6 crore in FY23 as against Rs.79093.4 crore witnessed in FY22. Also, IT Services segment revenue increased to $11,159.7 million, an improvement of 7.8% YoY.

The Wipro share buyback is expected to improve return on equity and earnings per share by reducing the equity base in the long term, leading to an increase in the value of members. It also provides an opportunity for shareholders who are holding the Wipro shares, to increase their percentage of holding in the company.

Also read – Indian Forex Reserve dropped by $4.34 billion to $589.14 billion

How do I apply for Wipro buyback?

The investors are eligible for the buyback scheme who have Wipro shares in their Demat account as on the record date which will be updated soon.

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