Wipro Buyback 2019

Wipro Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO) is a leading global information technology, consulting and business process services company. They harness the power of cognitive computing, hyper-automation, robotics, cloud, analytics and emerging technologies to help our clients adapt to the digital world and make them successful. A company recognized globally for its comprehensive portfolio of services, a strong commitment to sustainability and good corporate citizenship, we have over 160,000 dedicated employees serving clients across six continents. Together, we discover ideas and connect the dots to build a better and a bold new future.

Buy Back Offer Deal:

Buyback Type: Tender offer
Buyback Record Date: Jun 21 2019
Buyback Offer Amount: ₹ 10500 Cr
Date of Board Meeting approving the proposal: Apr 16 2019
Date of Public Announcement: Apr 16 2019
Buyback Offer Size: 5.35%
Buyback Number of Shares: 323076923
FV: 2
Buyback Price: ₹ 325 Per Equity Share

Details of Buyback:

The Board of Directors of the Company at its meeting held on 16.04.2019 has interalia approved a proposal to buy back up to 32,30,76,923 Equity Shares of the Company, being  5.35% of the total paid up equity share capital and free reserves of the Company, for an aggregate amount not exceeding Rs.10500 Crores at Rs. 325 under the "Tender offer" route using the stock exchange mechanism. Promoters have shown interest in participating in the buyback.

Salient financial parameters:

Year Revenue(Cr) EBITDA(Cr) EBITDA Margins PAT PAT Margins EPS
2016 47391 11967 25% 8200 17.30% 18.14
2017 48693 12024 25% 8161 16.76% 18.06
2018 47189 11615 25% 7722 16.36% 17.08

How to Participate in buyback?

1. Firstly to be eligible for the buyback the investor should have shares of Wipro Limited Buyback 2019 in demat or physical form as on record date. [ 21.06.2019] 2. Once you have shares in demat, you can participate in the buyback process which is opening from [ Not Announced Yet ] by selling your shares through your broker on NSE or BSE. 3. Then on [ Not Announced Yet ], the payment will be given to you for accepted shares and unaccepted shares will be returned to your demat account.

Profit from the buyback on the bases of acceptance Ratio:

Buy 615 Shares at CMP of Rs. 280[2,00,000/325=615)
Acceptance Ratio 33% 50% 75% 100%
Amount Invested in Buyback 1,72,307 1,72,307 1,72,307 1,72,307
No. of Shares buyback 202 307 461 615
BuyBack Profit 9090 13815 20745 27675
Profit 5.24% 8.01% 12% 16.06%

Recommendation:

Review and Recommendation of Wipro Ltd Buyback 2019 by IZ team is: 6/10 Fair: 1-5 Good:5-7 Excellent: 7-10 [ Expected AR above 90% ]

    I am holding 650 Shares of Wipro. Will i be eligible under the retail portion ??
    I mean the Value under Rs 2 Lk. is it based on Buyback Price or Current Market Value
    pls clarify

    Any advise on wipro. I am holding 400 shares @ 289.75. Tomorrow is the last date.
    1) Should I exit or Should I stay for the buyback ?
    2) Should I exit after the record date and buyback as per the LoF ?
    3) Or to stay till the end and submit and see if the actual AR is yielding the maximum return ?

      exit if price is around 308..
      and if price stay around 295 then go for buyback

    MENE WIPRO KE 600 SHARE BUYBACK KE LIE KHARIDE HAI. KITNE SHARE BUYBACK MAI COMPNY LEGI.

      yes
      but not on ex date i think.
      because they debit the share before record date

    Dear MW, can be make one lot short in future of Wipro, as we all know it will definately go down after ex date … Kindly advise as lot qty is havey….future@295

    In this post AR is mentiond above 90%
    Can that be possible ?

    I have one strategy with me
    1) Buy Shares in cash at 300/
    2) Buy 300 Put
    3) Sell 300 Call option
    Exit these all positions after the record date

    Buy acceptable shares again back from market once the minimum acceptable shares known

    So that eventhough Wipro falls to 200/ you are protected.

    Please share your thoughts

      It is a good strategy. However, for cash, we have discussed previously that buy around 280-285 level and sell everything on ex-date and then wait for LOF(Letter of Offer) to buy that many shares as per minimum entitlement to get benefit in buybacks.

        Sir
        Pls explain this Strategy with Action Dates & example if possible
        thanks

        Hi,

        Bought 600 shares from account 1 and 600 shares from account 2
        One in my kotak account other in my wife zerodha account

        Did hedging with options

        Can you tell me, can I exit on record date ??

          At what price did you buy 600 shares from each account and at what price did you hedge?

            I bought at 300
            Bought this month 300 put at 6.95
            Short sell this month 300 call at 2.15

            Exit everything together on record date.

            Plz let me know on which date I can exit ?

    I have about 200 shares of Wipro. To participate in the buy back till which date I need to keep the shares? Normally I want to sell just after buyback participation. And then based buyback AR I can buy those shares back. Also do you thing it is a right approach ?.

    I hold 6 shares at rs 295 each…. shall i buy 25 more shares at above 295 price….will all my shares be taken in buyback…is it worth buying…if i sell after record date…will i get profit

    Please discuss about wipro in this forum.
    Any idea what will be the price action from here till the record date?

      Looks 305…
      Also as price near to 300..
      MW plz update about ur view on AR?

        Not at all. I think 45 to 55% =max
        Don’t dream of 75 % in any case

      Other IT companies are doing good.. TCS is skyrocketing.. I think if any appriciation in dollar value it may surge beyond 310/-. Again thats on a bullish note.

    As per the share holding pattern mar 2019, no of shares held by retail share holder( 2 lakh category ) is 11.4 cr approx. That can increase once we close to record date which will definitely depend upon price also.
    And as retail quota suggest accectance of approx 5 cr shares.
    So my opinion is AR can be in between 50-60 %.
    Correct me if i am wrong.

    Record date is not updated?
    Any idea what will be the maximum upside before the record date ?

    21st june is fixed as record date for a person to have shares in his/her demat acct. So from exhange one has to buy by 19th and 20th will be ex buyback. So for entitlement, if one has shares, they can sell on 20th and choose to buyback later to submit. However this strategy to my mind is not a good one. Either exit on 19th and forget buyback or retain.
    https://www.thehindubusinessline.com/companies/announcements/others/wipro-ltd-record-date-for-buyback-of-equity-shares/article27427831.ece

    Would it be prudent to sell a day prior to the ex date? (For those who don’t wish to participate in the actual buy back) And what would be the ex date for this? June the 19th?

    I sold my shares @295/- & booked rs 24000/- profit. Bought for buyback but not comfortable with market position right now, so sold out. Whole world is falling except India so anytime downward journey can start plus AR should be around 55 to 60 %. So booked whatever profit i had.

        I had 615 shares in my 5 family account. So 3075 shares avg @ 287. Sold @ 295 and seeing 291 live price now i am satisfied with whatever i got.

      As per the share holding pattern mar 2019, no of shares held by retail share holder( 2 lakh category ) is 11.4 cr approx. That can increase once we close to record date which will definitely depend upon price also.
      And as retail quota suggest accectance of approx 5 cr shares.
      So my opinion is AR can be in between 50-60 %.
      Correct me if i am wrong.
      Please give ur view sir..

    Can anybody guide me, how much Wipro fall on ex date in previous two BB, this will help in decision making….thanks

      Indicative price is 1657
      Close price 1667 if you want just 10 RS then only apply.

    Too many people are rushing for this buyback. The acceptance ratio will be as low as 60% in retail.

      but i will opt out from buyback as soon as price will mark around 310

        YES I ALSO, IF PRICE TOUCHES 310 BETTER TO SELL AND GET OUT.

      It can go down to 40%, as it happened in TCS.
      PLAN ACCORDINGLY

    I have already purchased 600 shares of Wipro.

    I would like to sell the shares & buy back again during the buy back period.

    If the record date is June 21st, when can I see the sell the shares? Is it June 19th (or) June 20th. Please advise.

    TIA

      Only after 21 June I think.
      Bcz if you sell on 20 June share goes out of demat same day then your name won’t be there on 21 record date.
      Plz correct me if wrong.

        It depends on the broker. Technically, the shares sell on 20th June should not go out of demat before 21st June. However, a broker like Zerodha deduct shares and pool them in there account. So it is always a risky proposition. I request all who are planning to do this must ask their broker in advance in writing so that later on they do not make any excuse. E-mail your broker and get written reply.

        Please see the link below which I have taken from BSE regarding the settlement of Trade which clearly indicates that shares/money should be settled in T+2 day.

        https://d2un9pqbzgw43g.cloudfront.net/main/bse-settlement.png

          Despite the Settlement cycle is T+2, Due to auto pay in your stocks gets debited and transferred to pool account on T+1 which falls on 21/06/2019 (Record Date). However you still has a right to participate in the buyback offer. Please keep in mind that cumulative holding in brokers pool account is likely to be more than threshold limit of rs 2,00,000 and hence you might not eligible to be considered as small shareholder (Category of less than 200000)

            I think only those people who have not subscribed to auto pay in facility and still using the DIS can sell shares on 20/06/2018. They can submit their DIS to their DP with execution date as 24/06/2018.

            also i got msg frm my broker….record date is 21 june…but to participate in buyback one should buy shares till 17th june…

          I have account with zerodha so it will be advisable to hold until 21st.

          In that case, If My broker is zerodha
          I’m not allowed to sell on 20th June.

          which is bad, Because price will go down on that day, So should be first one to sell.

          Any alternative you know for this for zerodha accounts

            Please contact the broker and get the clarification.

        So from Zerodha, it is very clear that they won’t let you participate in buyback if you sell on Ex-date. So better to square off the position on 21.06.2019.

          Technically shares needs to be debited on T+2. I don’t understand why there are running Auto Pay In files before T+2. The only option left with us (Retail Investor) is to approach SEBI and apprised them about this situation. SEBI can issue guidelines regarding “Auto Pay In” of shares, which brokers are bound to follow.

      HOLD TILL 21 JUNE THAT’S THE CONCLUSION.
      BUT STOCK IS GOING TO FALL SHARPLY ON 20 JUNE ONLY.
      WE HAVE TO BEAR THIS.
      I DONT THINK WHOMSOEVER BOUGHT AROUND 285 ZONE OR LESS HAVE TO WORRY.

    MW..Kindly inform apxly…
    If still price remaing in d range of 290 to 295 till record date..

    What will b tha AR?

      AR should be around 80% if the price goes above 305. A lot of investors who bought around 278-282 level will come and book profit which will eventually improve AR.

    21 June it means one can buy on till 19 June to eligible for buyback
    What price should we expect till 19 June
    300+ or 305 or 310 as market are on all time high.

    Buyback approved but record date still not announced may be by the late evening it will be out.

      Postal ballot result are out
      Dear Sir/Madam
      Sub: Results of Postal Ballot and e-voting
      Furtherto our letter dated May 2,2019 and in accordance with the Regulation 44(3) of SEBI (Listing
      Obligations and Disclosure Requirements) Regulations,2015, please find enclosed the voting
      results and Scrutinizer’s Report forthe resolutions relating to approval for Buyback of Equity Shares
      and appointment of Mrs. Arundhati Bhattacharya (DlN 02011213) as an lndependent Director of
      the Company, as set out in the notice of postal ballot dated April 16, 2019.
      The aforesaid resolutions have been passed through Postal Ballot and e-voting by Members by
      requisite majority.
      Thanking You
      FoTWIPRO LIMITED

    Sluggish behaviour of Wipro is concern or not ?? It is hovering bet 285 – 90 since the announcement of buyback.
    This can lead to rapid fall in prices after record date ??

      yes price may fall after record date..thats why it is recommended to buy around 280…so even if price will fall …buyback profit % will nt be affected so much…

        MY average is 284. I hope I dont see negative returns post Buyback

        i hv same…but still cant figure out what could be the outcome as CMP is 290 and expected record date is 28 june…It may cross 300 in mean time ..

    Dear All

    Wipro *Postal Ballet Results* and *Record Date* expected to be declared on Monday…..

    Buyback Rate expected unchanged @325

    I have 10 share. will they consider all 10 share for buyback? please suggest

    http://bit.ly/2wmwn2u ~
    Source: EconomicTimes

    *SQ Insights (Beta)*
    Wipro wins deal from Fruit of the Loom

    BENGALURU: Wipro has got a multimillion-dollar technology services deal from American underwear maker Fruit of the Loom, a company owned by billionaire investor Warren Buffett’s Berkshire Hathaway.

        What would be the record date? Before or after June 3? What if I have bought today? Will I get a chance to tender those shares?

        on or after 3rd june , wipro will announce the record date….and it is assumed that atleast 15 days gap will be provided..so u hv atleast 15 trading days to participate in this buyback offer…

          Oh! Ok. So I can keep buying Wipro. I was circumspect as I thought the record date could be from the past. So I can safely go ahead and complete my purchase of close to 2 lac worth of shares from tomorrow onwards and still participate in the buy back offer(Till two working days prior to the record date). Is that correct?

    With 299.45 as 52 week high and currently trading @ 282.65, what are the chances to have share price rise to 325? what is the tenure to have it increased it to?

    Hi All,

    Wipro ADR share price = 4.50$ (roughly ₹312)

    And share price of Wipro today = 283.10

    Why such a difference?

    I’ve just taken 300 wipro share. Now the company will take back many shares in the buyback

      Increase you holding to 2 lakhs
      Then in buyback tender all your shares
      Almost every analyst is digesting 70-80% acceptance

      And make sure that you buy below 290
      No benefit in buying at 300

    I’ve just taken 300 people. Now the company will take back many shares in the buy back.

    Balrampur Chini
    I had 350 shares which I sold on record date. As per Market wizard 26 shares will be accepted. so I should buy 28 shares and tender 28 or should I buy 28 and tender 350.Basically all my 28 shared shares should be accepted. Your response is much appreciated. Thanks for the help
    I am new to Equity market and trying to understand the buyback process

      (i) Entitlement for Retail is 8.06%

      (ii) In your case, as you were holding 350 shares, minimum of 28 shares that will be accepted.

      (iii) So you need to buy 28 Shares from the market and then tender in the buyback. However, for buying wait for tomorrow election results.

    Should we buy wipro at 281 (CMO)
    Also I am thinking of selling l&t at cmp(1470)
    Any views

      Yes. tomorrow market can go haywire in any direction. better to book profit in L&T.

    Quick heal Ltd
    No. of Equity Shares held by me on Record Date being April 26, 2019
    500
    Entitlement for Buyback Offer in terms of no. of Equity Share
    82
    Now question is I have only 300 share in my demate.

    If I tender only 300 than how
    many share accepted by quick heal.
    If I buy another 200 share today and tender 500 share than how many accepted.

    Please reply Market Wizard sir.

      the no. of shares u will tender , acceptance will be acc. to such…if acc ratio will be 20%….then 60 shares will be accepted out of 300…but if u buy 200 more and tender 500 …then 100 Shares will be accepted….
      buying decision on 200 shares depends upon u….quick heal is already down…

      First of all 82 shares will be accepted by the company .
      ABOVE that no guarantee in terms of no of share accepted if someone doesn’t participate in the buyback(which is highly unlikely bcz low share price) then remaining share will be given to you .
      I think better to apply what you have don’t make a fresh purchase.

    Slowdown Blues: After Cognizant, IBM India fires 300 employees from the services division

    http://www.msn.com/en-in/money/news/slowdown-blues-after-cognizant-ibm-india-fires-300-employees-from-services-division/ar-AABmb3r?li=AAggbRN&ocid=1PRCDEFE

    The Effect of Artificial Intelligence and Machine Learning has started taking a toll on employees. In the future, if we want to have a job then we should be trained yourself better than machine else we will lose out.

      YES SIR COMPLETELY AGREE WITH YOU.
      It is good for the company because of the reduced labour cost and increases the profitability.

    Trade war is impacting IT shares today good opportunity or we should worry ??

    Is it a good time to buy Wipro or should we wait for further fall? I’m buying entirely to participate in buyback offer.
    As the record date is not yet announced i think we can still buy for participating in buyback offer.

      Buy half now it’s good price
      Later half can be bought after election result.
      Don’t expect major fall in Wipro

    Has the record date been announced …if yes pls update the main page.

      Where did you get this date from. Can you post the link. As i said earlier, record dt will only be fixed once shareholder approval is obtained, thus anytime post 3rd june

        I mean to say that the record date will be decided on 3 June after buyback gets approval of shareholders

    Wipro is not softing at all looks like 280 – 85 is not possible . Looks it will hover around 300 in few days.

    1. is the investor qualified for the buyback on the basis of number of shares held on the record date. I mean if he has worth rs 200000 shares on the record date of buyback and possible acceptance ratio is 50%, then is he qualified to tender shares worth rs 100000. But the question is, if he sells some of the shares ( say worth rs 100000, because expected acceptance ratio is 50% and offload remaining shares in open market) just day after the record date, is he eligible for the expected 50% acceptance ration or he should be having full shares on the closing date of buyback. Responses are welcome

      Irrespective of the Acceptance ratio, if you are eligible under buyback please sell everything one day before the record date. In fact, all big players sell there shares one day before the Record date and then wait for entitlement to announce and then buy accordingly.

        If follow this approach, will short term gains be applicable. As we sell just before record date. Then buy as per the eligibility and then tender it in buyback. We may earn profit will it be considered short term gain and taxed

      Yes you can sell in open market after record date. You still be eligible no need of holding till buyback ends.

      Acceptance ratio is based on the shares tendered for buyback and limited to the holding on record date. If you are having 2 lakh worth of shares on record date and tendering 1 Lakh for buyback, your eligibility is for shares worth one lakh only.

      If we sell before record date
      How come we will be eligible
      There won’t be any shares on record date then
      Isn’t it

      I think what market wizard means by selling a day before record dt is probably to imply that you still hold shares in record date ( since settlement is on t+2 basis. So what he probably means is selling on the day it becomes ex entitlement record dt in the exchange ( which is 2 days before the co record dt). Do check with brokers.
      I do not however adopt this strategy because it has its own pros and cons

    Cognizant considering job cuts after slashing growth target

    https://tech.economictimes.indiatimes.com/news/corporate/cognizant-considering-job-cuts-after-slashing-growth-target/69169108

    Cognizant’s troubles also hit the shares of its India-listed rivals. The top five IT companies lost about Rs 38,900 crore in market capitalization, ending down 1-4%. The Nifty IT index ended down 1.9% at 16,092.9, recording its worst one day fall since February 20 this year.

    So Wipro should be available up for grab around 280.

    Apr 19 is the cut off date to receive postal ballot , ie. that is the record date to participate in e voting,

    Checked BSE site :-
    The Postal Ballot Notice, together with Explanatory Statement and Postal Ballot Form, is being sent to the Members whose names appear on the Register of Members/list of Beneficial Owners received from the Registrar and Share Transfer Agent, National Securities Depository Limited (NSDL) and the Central Depository Services (India) Limited (CDSL) as on April 19, 2019 i.e. Cut-off date.

      Yes you are right.
      Got misleaded by news on mint site .

      I do not think so. This date was only gor the purpose of sending notices. Since the buyback has not been approved, i do not think this date of 19th april is the record date for eligibility. Can @marketwizard pls comfirm what i am saying is correct?

        Yes it looks like record date for postal ballots.
        News is misleading on various site.
        Thanks

    Wipro has fixed April 19, 2019 as record cut-off date for eligible shareholders for the buyback plan

    My view is that after record date price will fall to 260 levels , that is the most important factor . So do not buy above 290 in any case if you want to make money , acceptance will be around 50% and in the remaining 50% one may have to book loss of 30/- rs per share , so no point buying above 290 , try to buy as low as possible , i feel in days to come it will be available around 285 , so dont buy in a hurry .

      Is record date already set as 19th April 2019? So now can’t participate in Buy Back?

    I think ones who are looking at wipro buyback on retail category the following could be the guideline-
    1. Those who bought at 275-85 range, hold on and can consider exiting if the price goes above 305 with no record date in sight. And if record date is announced, hold on and then strategise. Maybe one can get a chance to do arbitrage by again buying below 290 levels.
    2. Those who have not bought till now, can buy in chunks of 25 % each with every 5 rs movement, upto a level of 300 ( though noy lucrative, but if the pricepoint remains at 300 till the buyback, expect 100% buyback.
    2(a). If however the price falls below 280, and /or the mkt is depressed due to any reason ( election result etc), be ready to accept thay buyback will be 60-70%, but u will still make money.
    3. As a thumb rule any one buying wipro today at abt 300 or more,in full quantity for buyback, is not doing the right thing. Better to wait and buy in lots at every decline if it happens. If it does not, then wait to observe the mkt and review closer to record date

    The postal ballot notice has been recd by the shareholders of wipto yesterday to give consent for the buyback.
    Think a timely step. Voting ends on 1st june.

    Pls m w suggest Wipro share price will down or not .I want to purchase shares for buyback

      Please don’t purchase now. Wait for 270-280 level to purchase. Whether that level comes or not is hard to judge at this moment.

        I DONT THINK 270-280 LEVEL WILL COME BEFORE RECORD DATE,
        BETTER TO BUY SMALL AMOUNT AT EVERY DIP OF 4-5 RUPEES FROM HERE.
        WE CAN GET THOSE LEVEL ONLY IF SOMETHING GOES WRONG ON 23 MAY OR ELSE IT WILL BE MISSED BUS.

      ha ha ,rate of wipro increase by RS 10 in just 7 days,After announcing of record date will increase further RS 10/-,now day by day going out of hand,

    Slightly off topic. Does any one have data on the subscription to the rights issue of Vodafone Idea ?

    Hello sir
    Can I buy this stock Wipro today for buy back purpose
    So can I eligible for that sir……

    WIPRO – 290+ ALREADY
    DO YOU ALL STILL FEELS WE WILL GET BELOW 280 LEVEL

    pls excuse for off the topic qstn.
    One query I have. Can I use my saving account to apply for my father’s right issue of vodafone idea ltd.
    Pls clarify any of the good self

    Wipro will cross 300 by this expiry. difficult to buy before completion of buyback

      only if rupee goes above the 71 mark. or else it will cross 300 near record date .

    As brokerages downgraded wipro it started going upword . Look it will remain above 290till record dates.

    Definitely not a good time to buy as per many technical analysis indicators. If buyback is between 90% – 100% INR50 upside is a good deal even if bought at 275. I would probably buy around 260/270. Exit if the stock hits between 315-325. Good luck everyone who is holding it. If one is willing to buy at this level, I would aim for price between 270-280 not beyond that

    Brokerage firm CLSA on Thursday reiterated a ‘Sell’ rating on Wipro with an unchanged price target of Rs 220 per share due to its growth and execution challenges. Weak Q1FY20 guidance of -1.4 percent to 0.6 percent QoQ suggests growth challenges will persist for the company, CLSA said.

    dear sir
    please inform me,
    If I have 100 share, then I get the benefit of buyback?

        I am having more than 100 wipros’s shares, how can I participate in this buyback? Kindly guide me, thank you

          Please wait for the buyback to open. We will inform once it will be announced.

    Buy Wipro; target of Rs 315: ICICI Direct
    ICICI Direct is bullish on Wipro has recommended buy rating on the stock with a target price of Rs 315 in its research report dated April 18, 2019.

    This research houses are so cunfusing…

      Even Angel Broking is again and again recommending Wipro shares. According to them, they have always beaten market estimates in their recommended shares and also that Wipro shares are grossly undervalued (according to them).
      However one thing to note is that the profits declared now are of Wipro Limited. There is no seperate listed entity for the tech division. Wipro also has a massive market of consumer durables. And consumer durables had severely suffered a beating in the last 1 year.

    There are near term challenges with WIPRO. The buyback however would depend upon how many people jump in to pick up the WIPRO shares. More the number of people onboard WIPRO the lesser would be probability of a good return. Institutions would use this opportunity to see offload shares to retailers.

    I hope few things can turn specially the Forex rate. Rupee should slip against the dollar. That would really boost the margins and cushion the expected wage hikes.

    It is very likely unaccepted shares will see the price of 250 -260 which was the prevailing price just a few weeks back. Buyback is juicy for people for those who bought at that range. For others they can take a risk and see where it goes.

    HDFC Securities’ research report on Wipro
    Target – 250

    We downgrade WIPRO to SELL (from Neutral), post the insipid 4QFY19 show and weak guidance. Revenue growth remains challenged and margins are peaking. The recent security breach raises questions about client’s data security and is a setback to Wipro’s reputation.

    Outlook
    The much awaited buyback (5.4% of equity at Rs 325/sh, 16% premium to CMP) kicks up FY21E EPS by ~2%. At 14x FY21E EPS, our TP is Rs 250 (~11 downside from CMP).

    Mw
    You views

    As per me Mphasis was die to general market rout
    If condition remain favourable or even neutral then I don’t think there will be any loss

    As we are expecting 260 which seems difficult, I Will start buying below 280.
    buying 50 qty every 2-3 rupee fall, 270-275 avg price will be good.

    In Mphasis also i did same mistake , buying in hurry looking at earlier acceptance ratio close to 100% , but till the time buyback started too many retail like close to 5 times retail had buyed and price had also fallen drastically , i was in heavy loss even before record date and after record date , it was like hell got fallen , finally acceptance happened at 20% and remaining shares sold at heavy loss . This time i am not in hurry once this initial euphoria will settle down price will come close to 260 in about a months time and then it will be better to add .

    Buyback acceptance looks good but Wipro reported weak Q4 results , next Quarter guidance is also weak , I dont think market will be very much happy , yesterday ADR was down close to 4% , today also it is flat on the negative side . So I will not buy in a hurry , i think 260 will be a good rate to buy as buyback will not happen soon , it will take minimum of 4 months from here , so i think lower rate will be seen here and that will be the right time to buy .

    WIPRO stock price was around 255 when BB news came if we consider it fair value then its fair value after this set of results will be sure below 250. so it can fall to those level after record date. As I was observing we here failed most of the time predicting the AR drastically. as in MPHASIS everyone was hoping 70% AR but it came to be 18%.
    PLZ correct me if Wrong.
    THANK YOU .

      Don’t go by share prices of February and March. All stocks were beaten down so bad at that time. The fair price of Wipro is around 275-280. 20% above and 20% below margins are acceptable. If it goes above that, then you should worry that it is overvalued.

    I see retail investors are optimistic about buyback , but this is not going to be that easy results are weak so there can be severe dragdown on remaining shares which was not taken in buyback. I see AR around 50 %
    So plan accordingly . Bcz in 2017 they took 7.35 % of equity this time it’s 5.25%.

    Very well explained by Jain Ji. Some points which I would like to add.

    1. As per the shareholding pattern of 31.03.2018, the number of shareholder holding shares between 0 to 1 lakhs were = 8,86,48,813. However, for calculating exact Acceptance Ratio we need to find out how many Retail investors holding shares between 0-615.

    2. To move one step closer, we dig into the Annual Report of 2017-18. As per the Annual Report, the number of shareholders holding shares between 0-5000 are close to 3.57 Cr.

    3. As per the shareholding pattern of 08.03.2019, the number of shareholders holding shares between 0 to 1 lakhs are 11,07,88,267( this increase of close to 3 cr shares between 31.03.2018 and 08.03.2019 is due to a bonus issue of 1:3 shares in the month of March 2019).

    4. After the buyback announcement, a lot of people would rush to buy. We are assuming close to 3 -4 Cr new shares would be added. So Retail quota won’t be more than 6-7 Cr. ( 3.57+1.19 bonus shares+ 3-4 Cr new shares)

    5. So AR as per this calculation would come out to be 65-70%.

    As an investor, we just need to worry about that 30% unacceptance. However, I feel share price would move easily pass 300 in the coming month and AR should be 100%.

    Here is my analysis on the likely buyback ratio in retail category based on past acceptance of 2017.
    1. Last time wipro fixed 15sept 2017 as the record date. The shares held In june 2017 in the category of nominal capital less than 2 lac was abt 10 crores( not to be confused with mkt value upto 2 lac, but being used as the best avlble official data for comparison). By sept 17 post record date this had jumped to abt 14 crore shares and we can asdume that 4 crore shares were bought by traders for buyback. This amounted to abt 2.1% of the total shareholding of wipro.
    2. The retail category portion was abt 5.6 crore shares then approx.
    3. In retails almost 100% buyback happened ( or abt 99%).
    4. Now this time, as of post bonus issue, the shareholding under the same nominal shareholding less than 2 lac category is abt 11 crore shares.
    5. The buyback size under retail is abt 5 crore shares.
    6. Assume an overflow of further buying, this category shares will swell to abt 15 crores.
    7. In 2017, this ratio was 5.6cr/14 crore or 40% and despite that almost 100% buyback happened in retail.
    8. Hence assuming the above ratios, i believe with 5 crore as retail buyback size and abt 15 crore share, or abt 33% ratio, we can expect abt 75% buyback in retail category.
    ( I hope mkt wizard will give his views on my post and am sure he may have more data to help analyse this).
    I personally feel that reasonable returns can be got if shares are bought in this buyback at the current price but maybe not above this.
    But do note that the process could take upto abt 6 months and also factor in a 15.6% short term capital gain tax. So if one expects a min 1.5% return per month, and i assume a worst case price of 250 for remainign wipro shares when sold, so for every 100 shares bought at 280= 28000 rupees invested, you can earn 75shares*40rs post tax and brokerage=3000rupees.
    On selling the remaining 25 shares at abt 500 rs loss the profit comes doen to abt 2500 rs.
    Thus on 28000 investment, one makes abt 2500 in 6 months or a return of abt 1.5% per month.
    ( Ofcourse above is subject to market risk and other factors which pls analyse in your own wisdom. I intend to apply and had already bought wipro a few days ago at abt 280 rs)

      Pls correct in my above post to read the min price expected post buyback closure is 260 and not 250

        Jai Joneses, Jain Sahab, lovely work, you help us ,rest for market wizard to guide us so we make good money

      Dar Mr jain , As you present your whole working for buyback is tremendously helpful to investors.I fully agree with it. But I think acceptance ratios will be higher as earlier.
      Thanks and awaiting more updates in this regard.

      Yes, it could be. Even on conservative side, it makes sense to invest and submit in bayback. I think the way mkt is moving, you may not have to sell these left out shares at a loss.

    MW, will be get Wipro between 265 to 275 in near future till RD kindly comment.

    What can be the expected acceptance ratio? My broker is advising to buy maximum 650 shares to ensure maximum acceptance. Please advise..

    Software services exporter Wipro Ltd today reported a 38% rise in fourth-quarter profit, helped by a strong performance from its banking, financial services and insurance segment.

    Wipro’s net profit rose to ₹2,484 crore in the three months to March 31, from ₹1,803 crore in the same period a year earlier. Revenue from its mainstay IT services business grew 11.1%, driving the Bengaluru-based company’s total revenue to ₹15,038 crore ₹13,824 crore last year.

    In dollar terms, IT services revenue of Wipro rose to $2,075.5 million, a growth of 1.4% quarter-on-quarter. Its IT services business reported an operating margin of 19% for the quarter.

    The record date has not announced. So it will take another one month time. Slowly accumulate.

    *Wipro buyback*

    Price – 325/-

    Size – 10,500 crores, 32,30,76,923 shares

    Retail Quota- 4,84,61,538 shares

    Tender route

    *Record date to be announced after postal ballot*

    Bought 170 shares today
    Will buy some more tomorrow

    @mw
    Is there a chance of 100% acceptance thus time as well

    Also please update on balrampur and quickheal

      Wipro- Let us wait for the buyback size announcement today. The market is expecting a 12000 Cr buyback. At this size chances of 100% are very high.

    Wipro employee accounts may have been hacked, investigation on
    https://t.co/5Mpzpuv1fP

    Negative news dragging Wipro down . However I feel it is a good opportunity to buy wipro.

    WIPRO બાયબેક ઓફર 👇

    BEST BUY OPPORTUNITY WIPRO….

    કલાયન્ટ મિત્રોને જણાવવાનું કે WIPRO કંપની બાયબેક કરવાની છે…

    ★ Leading IT સોફ્ટવેર કંપની છે, ફન્ડામેન્ટલ મજબુત છે,

    ★ હાલ 283 Rs ભાવ છે અને કંપની 330 Rs ની આશ પાસ બાયબેક કરવાની ધારણા છે
    16/04/2019 મીટીંગ મા ભાવ ફાઇનલ થશે.

    ★ WIPROના વધુમાં વધુ 600 શેર લઈ શકાય,એટલે 2.0 લાખ રૂપિયાના રોકાણ ઉપર સારો પ્રોફિટ મળવાની શક્યતા છે….. 50 થી 60 દિવસ હોલ્ડીંગ….

    ★ 25% બાયબેક કરે તો 7000 Rs પ્રોફિટ થાય
    ★ 50% બાયબેક કરે તો 14000 Rs પ્રોફિટ થાય
    ★ 100% બાયબેક કરે તો 28000 Rs પ્રોફિટ થાય… approx

    Jigareligare
    9374629410
    07940094510

    Wipro will go for tender root definitely.. as the promotor holding is 76% . so promotor also has to reduce their holding as per sebi norms..so open offer buyback is not possible in case of wipro

    One should be cautious . Past AR is no longer valid in next BB.Mphasis previous AR was 100% but 2018 BB it was 20% only.investors lost heavily in that BB.

    In 2017 they did a buyback of 11000 Cr at Price of 320 Per share.

    In that buyback, almost 100% of shares were accepted.

    Equity and Reserves available as per last audited Balance Sheet of March 2018 is close to 52000 Cr.

    Maximum Buyback that can happen is 25% which comes out to be is 13000 Cr.

    Last time buyback size was 23%.

    So Accept a close to 12000 Cr buyback this time as well.

    Chances of AR would be close to 100% again.

    (i) Wipro Set to launch third Mega buyback
    (ii) Possible BuyBack Size 12000 Cr
    (iii) Possible Buyback Price 315-320
    (iv) Cash 14277 Crore
    Earlier Buybacks
    2017-11000 Cr
    2016- 2500 Cr