Wipro's Rs 12,000 crore share buyback will open on Thursday, June 22, and go on for a week, ending on June 29, the technology services company told the exchanges. The company plans on buying back 26.96 crore shares or 4.91 percent of the total paid-up equity share capital of the company through the tender offer route.

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A tender offer buyback is one in which the company makes an offer to buy back its shares at a particular price at which the shareholders can tender their shares. The amount is then credited to the shareholders' primary bank account.

At its board meeting on April 27, Wipro announced the Rs 12,000 crore buyback at a price of Rs 445 per share, which was then an 18 percent premium to the previous day's closing price. Even at current rates, the buyback price is a premium of 17.4 percent to Monday's closing.

"This is a tender offer, and the buyback price is Rs 445. The share is currently trading at around Rs 379, so as of today, the calculated premium is more than 17 percent, so we will advise you to take part in this buyback," Anubhuti Mishra, Equity Research Analyst at Swastika Investmart.

For Wipro, analysts largely expect an acceptance ratio in the 40-60 percent range. The last buyback by Wipro saw almost 100 percent acceptance. Retail acceptance in fact stood in the range of 50-100 percent in the last four share buybacks.

"We expect the buyback to generate a strong response from all retail and institutional holders as the buyback price is attractive," said Avinash Gorakshakar, Head of Research at Profitmart Securities.

Wipro's Rs 12,000 crore share buyback is the largest in seven years.

But what does the share price history of Wipro show post its share buyback? You can read more on that in this piece here.

Shares of Wipro are down 8 percent over the last year.

First Published:Jun 20, 2023 9:19 AM IST