Wipro share buyback witnesses 77.4% retail investor acceptance
Wipro, the leading IT services company, has successfully completed its ₹12,000-crore share buyback program, with retail investors showing a strong acceptance rate of 77.4%, according to reports.
The retail quota was specifically designated for investors holding less than ₹2 lakh worth of Wipro shares as of the record date. The buyback program commenced on June 22 and concluded on June 30, following the record date of June 16. Under this initiative, Wipro aimed to repurchase 26.97 crore shares at ₹445 per unit, leading to the elimination of 4.91% of the company’s total shares.
Prior to the buyback program, Wipro’s shares were trading at ₹381.30 each. As a result of the buyback, investors witnessed an impressive double-digit return of 16.7% in less than a month.
However, it’s worth noting that Wipro’s share price has experienced a decline of over 6% in the past year, while remaining relatively stable throughout 2023.
Reports indicate that participating investors can expect to receive their payment by July 7. Any unaccepted shares will be returned to shareholders on the same day.
Historically, Wipro’s previous four share buyback offers have seen acceptance ratios ranging from 50% to 100%.
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According to a recent report by Motilal Oswal Financial Services, Wipro’s organic growth for FY24 is anticipated to be one of the lowest among Tier-1 IT services companies, with a margin expected to fall below the management’s medium-term guided range of 17.0% to 17.5%. As a result, the brokerage firm has maintained a ‘Neutral’ rating on Wipro’s stock, awaiting further evidence of the company’s refreshed strategy execution and a successful turnaround from its growth struggles over the past decade. The target price set for the stock is ₹360 per share.
As of 2:13 pm, Wipro’s shares were trading 0.84% higher on the Bombay Stock Exchange (BSE), at ₹394.90 apiece.
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