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 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. [ Not Announced Yet ] 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% ]

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

      yes why not. you should have bought at around 278.

    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?

    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