Wipro buyback alert! Last date to buy shares to participate in Rs 15,000 crore share buyback

Investors looking to participate in IT services major Wipro’s share buyback worth Rs 15,000 crore will likely have to purchase the shares of the company latest by today (Thursday) before the stock goes ex-record date for the corporate action on Friday.

Wipro fixed June 5 (Friday) as the record date for its Rs 15,000 crore share buyback. Only those shareholders who own the shares of the company in their demat accounts as on the record date will be eligible to tender shares.

As per SEBI‘s T+1 settlement norm, investors must buy the company’s shares at least one trading day before the record date so that they are credited to their demat accounts by that date, making them eligible for the reward. This makes June 4 (Thursday) the last date to buy the shares so that they are credited to the shareholders’ accounts by the record date (Friday).

All about Wipro’s share buyback

Wipro earlier in April had announced a share buyback at Rs 250 per share, offering a 22.5% premium over the stock’s last closing price of Rs 204 apiece on NSE. The share buyback marks the first such action announced by the IT major in nearly three years. The company’s board approved the plan to buy back up to 60 crore shares, representing 5.7% of the total paid-up share capital, for an aggregate amount not exceeding Rs 15,000 crore.

The buyback will be done via the tender route, and all shareholders on the record date, including those who received the equity shares after cancelling their American Depository Receipts (ADR), will be eligible to take part in the corporate action. Wipro added that promoters and promoter groups have indicated their intention to participate in the proposed buyback.

Also read: Wipro promoters to join Rs 15,000 cr buyback; what it means for retail investors

Buyback of shares refers to a corporate action where a company repurchases its own shares from the existing shareholders. Usually, the company purchases the shares at a higher price than the current levels, encouraging investors to participate. Typically, a company decides to buy back its shares in order to increase share value, utilise surplus cash, prevent hostile takeovers or increase promoter holdings.

Should you participate in Wipro’s buyback?

Taking Wipro’s previous buyback trends and a relatively lean retail shareholding pattern into consideration, HDFC Securities came up with two investment scenarios. On the conservative side, the brokerage assumed a relatively lower acceptance ratio than the previous offer, that is around 45-50%. “This presents a compelling short-term opportunity for retail investors, offering a potential return (net) of 8-9% over a duration of 2–3 months,” it said.

On the aggressive side, HDFC Securities said that there is a strong quantitative basis to project a high retail acceptance ratio in the range of 70–80% (acceptance ratio was at 78% in 2023). It added that this presents a short-term opportunity for retail investors, offering a potential return (net) of 13–14% over a duration of 2–3 months.

“Given this track record of outperformance and the prospect of stable returns amidst current market volatility, the acceptance ratio is expected to remain significantly higher. Consequently, we recommend a tactical “Buy” for retail investors looking to optimise short-term capital allocation by participating in the upcoming offer,” HDFC Securities said.

Motilal Oswal Wealth Management meanwhile said that retail investors looking for short-term opportunities can buy the shares of Wipro. “Based on the last two buybacks of Wipro and very low retail shareholding, we expect the acceptance ratio to remain high in the range of 50-60% which could give a potential return of 11-13% (pre-tax) with a time frame of 2-3 months,” it added.

Wipro share price

Wipro shares gained more than 1% in one week and 2% in one month. The stock is however down around 24% in 2026 so far, falling 17% in one year.

In the longer term, the shares of the company gained only 1% in three years, but fell 24% in five years.

Also read: What’s ahead for IT major Wipro’s 26 lakh shareholders?

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)