Wipro share buyback sees 77.4% acceptance among retail investors
₹12,000-crore share buyback programme recorded an acceptance ratio of 77.4% among retail investors, reports said. The retail quota is categorised as those with investments less than ₹2 lakh in Wipro shares as of the record date. Wipro’s share buyback record date was June 16 and the programme ran from June 22 to June 30. Under the buyback programme, Wipro planned to repurchase 26.97 crore shares at ₹445 per unit.
After the buyback programme, 4.91% shares of Wipro will be extinguished. The closing price of Wipro shares as on the record date was ₹381.30 apiece. This gave investors double digit returns of 16.7% within less than a month.
Also Read: HDFC twins to IDFC First Bank IDFC merger: What India Inc may expect to achieve from these amalgamations Meanwhile, Wipro share price has fallen more than 6% in the last one year, while it has remained flat in 2023 so far. Participating investors will get their payment by July 7, reports said, and the unaccepted shares will be returned to shareholders on the same day. Wipro’s past four share buyback offers had seen acceptance ratios within a range of 50-100%.
In its latest report, brokerage firm Motilal Oswal Financial Services expected Wipro’s FY24 organic growth to be one of the lowest among Tier-1 IT Services companies, with margin below the management’s medium-term guided range of 17.0-17.5%. It maintained ‘Neutral’ rating on the stock as the brokerage awaits further evidence of Wipro’s refreshed strategy execution and a successful turnaround from its growth struggles over the last decade before turning more constructive on the stock. It has a target price of ₹360 apiece on the stock.
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