Wipro Buyback 2023: Key details to know for Investors

What is a Share Buyback?

A Share Buyback (also known as Share Repurchase) is when a company buys back its own outstanding shares from stakeholders to reduce number of stocks accessible in open market which is also an alternative to return money to investors.

Companies buy back stocks to increase the demand in the market, thereby inflating the stock value, Earning Per Share (EPS) and ROE of the company. A Stock buy-back is a sign the investors can use to make informed decision as it shows that the business has sufficient cash set aside for emergencies and the possibility of economic trouble is less.

Is Wipro Buyback 2023 good or bad?

The Wipro Buyback 2023 offers an opportunity for the shareholders to exit their positions at a premium price. In case you stay invested you would have an increased percentage of shareholding in the company and improved earnings per share. Thus, one should understand the company fundamentals along with one's need, goals, and risk appetite to decide if one wants to stay invested or participate in the buyback offer.

How to participate in the Wipro Buyback 2023?

1. Firstly, to be eligible for the buyback the investor should have shares of Wipro Limited in Demat or physical form as on the record date [16.06.2023]
2. Once you have shares in your Demat, you can participate in the buyback process which is opening from [22.06.2023 to 29.06.2023] by selling your shares through your broker on NSE or BSE.
3. Then on or before 06.07.2023, the payment will be given to you for accepted shares and unaccepted shares will be returned to your Demat account.
4. Login to  www.icicidirect.com à Visit the IPO section à Click on Buyback à Fill the required details and Apply

Wipro Buyback (2023)

Wipro Ltd. has announced a ₹ 26.97 crore share buyback - fourth such activity by India's one of the largest IT company in the last 8 year. The table given below highlights the key details regarding the buyback.

The company has stated that buyback shall not exceeding 26,96,62,921 (Twenty Six Crore Ninety Six Lakh Sixty Two Thousand Nine Hundred and Twenty One only) equity shares of the Company (representing 4.91% of the total number of equity shares in the paid-up share capital of the Company) at a price of Rs. 445 (Rupees  Four Hundred Forty-Five Only) per equity share payable in cash for an aggregate consideration not exceeding 12,000 Cr (Rupees Twelve Thousand Crores Only).

Snapshot of the past buybacks from Wipro Ltd.

Few Important Points:

1. If you have Wipro in MTF(Margin Trading Facility), then you would need to take Delivery of these shares (CTD) such that on ex-date shares are available in your Demat A/C.
2. If you are using SAM (Shares as Margin) in Wipro, then you would have to de-pledge them so that on ex-date these shares are available in your Demat A/C.