Wipro announces record date for Rs 15,000 crore buyback: Should you apply for it?

Shares of Wipro Ltd hogged the spotlight on Monday after the company announced the record date for its much awaited share buyback. The IT solutions player has fixed Friday, June 5, 2026 as the record date for the share buyback, where it will be repurchasing nearly 60 crore equity shares at Rs 250 each amounting to Rs 15,000 crore.

Shares of Wipro settled at Rs 203.10 on Friday, while it rose to 3 per cent to Rs 209.50 on Monday. The proposed buyback its offering nearly 20-23 per cent gains for the shares and 15 per cent of the total issue, or Rs 2,250 crore, has been reserved for small shareholders holding shares worth up to Rs 2 lakh on the record date.

Based on the initial details, small investors can tender up to 800 equity shares in the buyback. In the grey market, a Wipro buyback Kostak application for Rs 2 lakh was trading at Rs 4,800.

In a report released last month, HDFC Securities said the minimum acceptance ratio for small shareholders is estimated at 30.8 per cent, based on the FY25 annual report, higher than the 23.4 per cent floor mentioned in the 2023 offer letter. The brokerage said Wipro’s historical buyback performance points to a better outcome.

After the 2023 buyback announcement, the actual acceptance ratio stood at 78 per cent. It said this was calculated on the basis of a 15 per cent reservation for the buyback of 5.7 per cent of paid-up equity, which means at least 0.86 per cent of equity will be considered from retail investors as on March 31, 2025, resulting in an acceptance ratio of 0.86/2.79.

Given Wipro’s previous buyback trends and relatively lean retail shareholding, HDFC Securities outlined two scenarios. It estimated possible profits in the range of Rs 11,325 to Rs 37,750, based on acceptance ratios from 30 per cent to 100 per cent.

In a conservative case of 45-50 per cent acceptance, it sees a net return of 8-9 per cent over 2-3 months, while in an aggressive case of 70-80 per cent acceptance, it sees a net return of 13-14 per cent. HDFC Securities said it recommends a tactical buy for retail investors in the upcoming offer.
 

Wipro buyback: Should you apply?
The existing shareholders can tender their shares in the buyback. Since promoters are also participating in buyback, buying fresh and doing arbitrage can be risky as prices generally tend to drop post Buyback, said Sunny Agrawal, Head of Fundamental Research at SBI Securities. "One can assume a 25-30% acceptance ratio for retail holding value below Rs 2 lakh," he said.

Assuming a 30 per cent acceptance ratio at the current prices, Sushovon Nayak, Research Analyst, Anand Rathi Institutional Equities excepts retail investor to make 7 per cent return (pre taxes) and 5 per cent (post taxes) return on their capital. Assuming that the acceptance ratio increases to 50 per cent, the investors will make 12 per cent post taxes.