Wipro Buyback approved in its Board meeting held on October 13, 2020 has approved a proposal to buyback up to 23,75,00,000 equity shares (Twenty Three Crores Seventy Five Lakhs only) of the Company for an aggregate amount not exceeding Rs. 95,00,00,00,000/- (Rupees Nine Thousand Five Hundred Crores only) at a price of Rs. 400/-. Wipro Buyback corresponds to 4.16% of the total paid-up equity share capital of tje company and is on a proportionate basis through the tender route.
Wipro Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO) is coming up with another buyback of 9500 crore announced on 13 October 2020. Wipro Limited is a multinational corporation based in Bengaluru, Karnataka, India. They provides information technology, consulting and business process services. The company operates worldwide. They provide services like Digital strategy, Business consulting, IT services, IT consulting, Banking, Retail to industries like Personal care, Health care, Lighting, Furniture, Pharmaceuticals, Semiconductors, Natural resources and more. They have over 160000 employees across the globe.
Wipro Buyback 2020 Offer Details:
| Buyback Record Date: | 11 December 2020 |
| Board Meeting Approval: | 13 October 2020 |
| Public Announcement: | 19 November 2020 |
| Buyback Offer: | ₹9500 Crores |
| Buyback Offer Size: | 4.16% |
| Number of Shares: | 23,75,00,00 Shares |
| Share Face Value: | ₹2 per share |
| Buyback Price: | ₹400 per Share |
| Buyback Type: | Tender Offer |
Wipro buyback of 23.75 crore equity shares which is around 4.16% of all the existing number of equity shares at a price of ₹400 per equity share. The buyback offer not exceeding of ₹9500 crore of total buyback offer size.
Note: If anything you want to know about the buyback offer you can refer the Wipro buyback offer documents.
Wipro Buyback Important Dates
| Buyback Activity | Date |
|---|---|
| Board Meeting for Wipro Buyback proposal | 13.10.2020 |
| Wipro Buyback Approval date | 13.10.2020 |
| Public Announcement of Wipro Buyback | 17.11.2020 |
| Wipro Buy back Record Date | 11.12.2020 |
| Wipro Buyback opens on/Buyback Opening Date | 29.12.2020 |
| Wipro Buyback closes on/Buyback Closing Date | 11.01.2021 |
| Cut-off date to receive completed tender forms by Registrar | 13.01.2021 |
| Cut-off date for verification by the Registrar | 19.01.2021 |
| Cut-off date to inform Stock Exchange on acceptance or non-acceptance of tendered Equity Shares by Registrar | 19.01.2021 |
| Last date of settlement of bids on the stock exchange | 20.01.2021 |
| Last date to return unaccepted shares by Registrar | 20.01.2021 |
| Last date of extinguishment of Equity Shares | 27.01.2021 |
Wipro Buyback Eligible Share Holders:
The investors are eligible of the buyback scheme who have Wipro shares in their Demat account as record date not announced yet. Investors can participate in the Wipro Buyback 2020 scheme as per the opening form by selling your shares. The payment will be given as per the accepted shares by the company under the Wipro buyback scheme.
Checkout Current Wipro Shares market price on NSE and BSE: Wipro Live Quote
About Wipro :
- Wipro is a leading information technology, consulting and business process services company.
- Wipro delivers IT Services, Business and Technology Consulting, IT Outsourcing and System Integration services & solution.
- Wipro is one of the top three players in the Indian Information Technology (IT) industry— It has s diversified revenue streams with healthy revenue composition across various services lines and domains; and strategic alliances spread across geographies.
- With a track record of over 25 years in IT Services, Wipro is focused entirely on the global Information Technology business.
- Wipro is listed on National Stock Exchange and Bombay Stock Exchange in India and New York Stock Exchange.
- Wipro operates in over 50 countries serving clients across 6 continents and the company has a dedicated workforce of over 160,000.
- Wipro’s Service Offerings include :
- Data, Analytics & AI Applications
- Digital Operations and Platforms
- Consulting
- Infrastructure Services
- Cyber security
Assessment: Wipro Buyback
- This is the third buyback from Wipro. In last buyback the acceptance ratio was 52% and before that it was almost 100%.
- The proposed Buyback is subject to approval of shareholders by way of a special resolution through a postal ballot and could take 3-4 months.
- Promoters have indicated their intention to participate in the proposed Buyback.
- Outlook for the quarter ending December 31, 2020: Management expects Revenues from IT Services business to be in the range of $2,022 million to $2,062 million. This translates to a sequential growth of 1.5% to 3.5%.
- There was a strong jump in cash flows in the quarter.
- Wipro being in F&O, Wipro Buyback may offer a reasonable opportunity to arbitrage investors as such stocks exhibit relatively lower volatility post buyback and some investors can hedge their positions as well.
- Wipro has run up considerably in last few days in expectation of buyback. One cannot rule out some pressure on the stock price in coming days.
- From an arbitrage angle, due to considerable run up in market price, I would wait for some dip in prices. The movement in the stock price price in coming days will have a bearing on its acceptance ratio and returns. A good traction in stock price could lead to arbitrage investors exiting the stock and in such case the expected acceptance ratio could end up higher and even approach 100% . Any denial of such opportunity will bring down the returns due to low acceptance ratio and a lower price post buyback.
- This is a large and moderate opportunity and if markets are not very volatile, investors should get an opportunity to enter the scrip and make modest returns.
Wipro Buyback 2020 FAQs:
When is Wipro Buyback Record Date?
Wipro buyback 2020 record date is 11 December 2020
When is Wipro Buyback announcement Date?
Wipro buyback 2020 record date is 19 November 2020.
What is Wipro Buyback Price?
The company has fixed the price at ₹400
How to apply for Wipro Buyback 2020?
As per the record date you need to have Wipro shares in your demat account. You can participate in buyback after having the stock in your account.
