Wipro Share Buyback: Key details you need to know

23 Jun 2023 , 12:31 PM

IT behemoth Wipro on Thursday unveiled a massive Rs 12,000 crore repurchase program. The buyback would be Wipro’s first in more than two years. The corporation has established a floor price per equity share of Rs 445. In the final quarter of FY23, the company reported a variable performance.

Here are the top 10 features of Wipro’s buyback:

1. The buyback entitlement ratio has been set at 62 shares for every 265 shares held by shareholders on the record date for retail investors.
2. The buyback entitlement ratio for general is 26 Equity Share out of every 603 fully paid-up Equity Shares held on the Record Date.
3. The Wipro share buyback program commenced on June 22, and the final day to apply for the buyback is June 29. Shareholders whose shares have been accepted as part of the buyback will receive the consideration directly from the broker by July 6
4. Acceptation Ratio for retail investor (Holding Shares worth of less than Rs 2 Lakhs on Record date) is 23.40%.
5. Wipro Buyback is a tender offer.
6. On record date, June 16, 2023, the price of Wipro Limited is Rs 381.3 per share.
7. After the buyback, the promoter’s stake in Wipro is set to increase from 72.9% to 73.37%.
8. The board of directors of Wipro has been authorized to repurchase a total of up to 26,96,62,921 equity shares, which accounts for 4.91% of the company’s total paid-up equity shares. The buyback program is valued at Rs 12,000 crore.
9. Wipro’s PAT for the entire FY23 is estimated to be about Rs 11,350 crore, a 7.2% decrease from Rs 12,229.6 crore the prior fiscal. Nevertheless, sales increased by 14.40% to Rs 90,487.6 crore in FY23 from Rs 79,093.4 crore in FY22. Additionally, IT Services segment revenue climbed by 7.8% YoY to $11,159.7 million.
10. Wipro reported a consolidated net profit of $3,074.5 billion in Q4FY23 on revenue of $23,190.3 billion. Operating cash flows for the IT company were $37.3 billion for the quarter, up 60% year over year and accounting for 120.6% of Net Income.

The repurchase is typically anticipated to enhance return on equity through the distribution of cash and enhance earnings per share by reducing the equity base over time, resulting in a long-term improvement in the value of the members. Additionally, the buyback offers shareholders the chance to expand their stake in the company as a whole.

Wipro Limited Buyback subscription details, June 23, 12.00 PM

Category	No. of shares bid for
Qualified Institutional Buyers (QIBs)	24,32,058
Non Institutional Investors	5,99,123
Individual Investors	3,76,63,018
Total	4,06,94,199

(Source: BSE)

Wipro’s past buyback cost Rs 9,500 crore and took place between December 29, 2020, and January 11, 2021. Wipro offered 22,89,04,785 equity shares as part of this buyback, totalling Rs 9,156 crore and accounting for 96.38% of the total buyback size. Prior to that, between August 14 and August 28, 2019, Wipro began a buyback program for Rs 10,500 crore.

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