Wipro Buyback 2020

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: Dec 11 2020
Buyback Opening Date: Dec 29 2020
Buyback Closing Date: Jan 11 2021
Buyback Offer Amount: ₹ 9500 Crores
Date of Board Meeting approving the proposal: Oct 13 2020
Date of Public Announcement: Oct 13 2020
Buyback Offer Size: 4.16%
Buyback Number of Shares: 23,75,00,000
Price Type: Tender Offer
FV: 2
Buyback Price: ₹ 400 Per Equity Share

Details of Buyback:

The Board of Directors of Wipro Limited (the "Company") at its meeting held on October 13, 2020 has approved a proposal to buyback up to 23,75,00,000 equity shares (Twenty Three Crores Seventy Five Lakhs only) of the Company for an aggregate amount not exceeding Rs. 95,00,00,00,000/- (Rupees Nine Thousand Five Hundred Crores only) (hereinafter referred to as the "Buyback Size"), being 4.16% of the total paid-up equity share capital, at a price of Rs. 400/- (Rupees Four Hundred only) per equity share (hereinafter the "Buyback Price" and such buyback, the "Buyback").

Salient financial parameters:

Particulars(Cr) Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20
Sales 46,951 51,244 55,448 54,487 59,019 61,138
Expenses 36,652 40,448 44,128 44,100 47,406 48,795
Operating Profit 10,299 10,796 11,321 10,387 11,613 12,342
OPM % 22% 21% 20% 19% 20% 20%
Other Income 2,450 2,752 2,623 2,550 2,614 2,728
Interest 350 558 594 583 738 733
Depreciation 1,175 1,496 2,310 2,112 1,947 2,086
Profit before tax 11,224 11,494 11,039 10,242 11,542 12,252
Tax % 22% 22% 23% 22% 22% 20%
Net Profit 8,661 8,908 8,493 8,003 9,004 9,722
EPS in Rs 12.26 13.52 13.1 13.27 14.92 17.02
Dividend Payout % 34% 17% 6% 6% 7% 6%
Source: Screener

How to Participate in buyback?

1. Firstly, to be eligible for the buyback the investor should have shares of Wipro Buyback 2020 in demat or physical form as on record date [11.12.2020] 2. Once you have shares in demat, you can participate in the buyback process which is opening from [29.12.2020 to 11.01.2021] by selling your shares through your broker on NSE or BSE. 3. Then on [20.01.2021] 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 500 Shares at CMP of Rs.375( 2,00,000/375=500)
Acceptance Ratio 33% 50% 75% 100%
Amount Invested in Buyback 187500 187500 187500 187500
No. of Shares buyback 165 250 375 500
BuyBack Profit 4125 6250 9375 12500
Profit 2.20% 3.33% 5.00% 6.67%

Recommendation:

Review and Recommendation of Wipro Buyback from our IZ team is: 7/10 1-5: Fair 5-7: Good 7-10: Excellent.

148 Comments

    Engineers India Limited buyback starts on Jan 22nd and closes on Feb 5th. Settlement date is Feb 15th. AR would be hopefully more than 70%. Thanks.

    I am still holding 500 share what can I do ? sell on Monday or hold for 450. Thanks in advance

      No one is GOD to predict correct price. IT stocks are doing good. You are getting good price anyway. If you have long term view, you can hold and get double value in 2-3 years. If your view is short, better book profit and enjoy. Budget is around the corner and you will see huge fluctuations.

      Sir, you better keep target to sell 200 @ 440, 200 @460 and hold the balance of 100 for at least one year for good price. Thank you.

    Ideally I should wait or cancel my bid for my retail quota shares,

    As my broker says if I cancel my bid, I will only be able to sell after 20th, is it true?

    I have a piece of advice to those who are thinking of tendering the shares at 405.
    Pls don’t esp because you will need to pay 15.6% stcg or 10% ltcg tax on the gains you make.
    So unless you get a min of 410-15 ( assuming one bought at abt 340-350 rs), you really could be better of tendering shares in buyback as income therefrom will be 100% tax free.

    Zerodha has allowed cancellation of Wipro buy back order till 2.00pm on 11.01.2021

        I am facing similar issue.
        I cancelled the buyback application in Zerodha easily but in ICICI direct dont see that option.
        Any detailed steps will help.

          Please contact your broker and ask them how you can do that.

            Thanks Umesh.

            I contacted my broker ICICI direct and they say they cannot cancel as the status shows executed. Not sure as what other options I have.

            One of my friend successfully cancelled through Zerodha account.

              Even in the case of SBI Securities, I am unable to cancel the buyback bid as the authorities of SBI told that I cannot as it was already accepted.

    Wipro market price Rs 405/-
    Enjoy!!
    Why to wait for Buybacj…Tender now…

    Wipro done Rs 400/-
    All those, who have bought for buyback can sell in market …
    may be add Rs 1 or 2..

    Hoping for 100% acceptance in wipro buyback and it also looks that wipro share crosses 400 mark before the closure of the buyback window. Because many sharehoders exited at 385

      Rohit ji, thank you very much for your contribution. It appears 99% possibility for 100% Acceptance Ratio regarding buyback of Wipro shares also in retailers category.

      Anyone who is looking to participate in the buyback will never get this price…at the most I got 118…that to surprisingly on the day that new covid strain was discovered. available CMP is not advisable for entry as it will fall surely after the ex date.

    As the record date for the purpose of buy back of shares has been announced by Engineering India Limited, a separate page for the same may please be opened for the benefit of readers and to enable them to offer comments for benefits of all viewing your site.

    I have 299 shares of Wipro on record date. But I haven’t received the email with entitlement ratio.

    Can some one help me with it.

    Can any body guide me surely about that I got 500 shares of Wipro as on record date and got the entitlementbof 234 shares for tendering for buy back as per offer letter received.
    In case the shares have been sold, can the shares be bought back from the market and be tendered now for buy back to avail the entitlement.

    For TCS buy back acceptance ratio is 40% as mentioned in the offer letter received however it is expected to be 80 to 90% looking the present price of Rs.2930/- quoted yesterday.

      Not recieved any email from company regarding entitlement only umesh paliwal sir’s information is reliable at present.

      Yes recieved the email regarding buyback recieved from karvy 234 out of 500 shares entitlement

    Thanks Umesh Paliwal Sir for giving the entitlement of wipro , some one recieved the mail regarding buyback please give information

      sir hw much reliable ur source for acceptance ratio?bcos i have to purchase shares from the market?

    Dear Market Wizard,
    Any news about the entitlement ratio for reserved category, please give information.

    Wipro buyback offer date announced
    Date of Opening of the Buyback Offer Period Tuesday, December 29, 2020
    Date of Closing of the Buyback Offer Period Monday, January 11, 2021
    Last date for Settlement of bids on the Stock
    Exchange*
    Wednesday, January 20, 2021

    Question. TCS buyback had started. Is it a good Idea? What’s the immediate post buy back behaviour of the stocks prices in past?

    Any internal news from sources about the expected entitlement for reserved category please give it

    Dear Market Wizard Now at present how much entitlement and acceptance take place in wipro buyback. Please give your opinion.

    So Wipro is the laggard and fallen today after closure of the record date….
    Price may spurt near to the end of buyback period, to be declared…

    Dear Brothers, Is anyone using Groww app for Trading. Please guide me to apply for WIPRO Buy back. Please “Market Wizard” let us know when the buy back is open and how to apply.

      The tender dates for the buyback has not been announced please wait for at least 2 weeks. as for the application process contact the customer care of Groww by email/call .

    *Wipro buyback*

    Expected Entitlement : 45-50%

    Expected acceptance : 75-80%

    Note – Those holding upto 565 shares on record date will be considered as small (retail) shareholders

      11.12.2020 is the record date to know the eligibility of Wipro. The buyback open dates have not been announced as yet.

    Can anybody tell me what will be the rate per share for buyback consideration as of 11/12/20 (record date) and how many maximum shares can a retail hold based on that rate to be still eligible for the reserved(retail) category ..

      Normally companies announce schedule of buyback after approx two weeks from record date(Wipro record date for buyback is 11.12.2020) after that they are sending offer letter through email to all the shareholders who are holding shares as on record date,
      So till then have patience.

    Hi, I am new to Share Market. I am holding 150 shares in WIPRO, planning to participate in BuyBack. Don’t know how to apply. Please guide me. I have asked my broker, they are saying need to submit tender notice. Searched in NET but no clue. Please guide me steps to do that. I am using GROWW app.

      Please keep calm and wait for the buyback window to open, which will take time. Once it is opened then you can tender shares via your broker app.

      09/12 is Cum date
      10/12 ex date
      11/12 Record Date

      Check in your Demat Account on 11/12 EOD…

      If shares sold after 9/12 , do not do Payin uptill 11/12 EOD

      Yes, why not. Still, a 10% upside is there. 50% chances of acceptance. so a 50% risk.

    Adesh sir, please tell that how much maximum shares ( numbers of shares) we can buy to eligible in retail category ??

    Indprud has any buyback news ?

    Very low volume traded share…
    Possible to be stuck…

    Better to avoid

    Indprud has any buyback news ?

    4% Tender offer at Rs 1200/- while current Market price is 993.

    Retail investors are 28% i.e. while 15% of 4% i.e. 0.6% would be accepted, 28% can apply.

    Leading to ER at 2.14% which is very small…

    Max 10-20% acceptance possible…
    No idea about stock history..

    Adesh sir , what will be the minimum acceptance ratio for retails as per the shareholders having less than 500 shares and 15% of total buyback..plz provide the data just as you did in tcs buyback forum …plz sir

      Sorry for late response because I do not access this app daily.
      I think you could expect abt 50% buyback and if the price firms up beyond 275 ( as it is going up now), then we could expect a higher acceptance.
      If it remains below 350 at the time of actual buyback duration, then I think we could even land up with 40% acceptance.
      Now it depends- if you are a long term investor and choose not to sell the unaccepted shares for atleast one year, I do not think you would regret

        Thanks alot sir…but what would be the minimum acceptance as per the shareholding report …plz explain as you did in tcs if possible ..it helped alot
        ..plz sir

      There are so many variables, I would suggest not to get into any share just for Buyback, if you are not sure of details.
      Following should be clear:
      1. Buyback process- Tender or Market
      2. Rate of Buyback- %age more than current Market price.
      3. possible Acceptance ratio, which can be understood by looking at the Retails share holders and the size of the buyback..

      Happy investing

    For Wipro 15% is reserved for retail category. Is there any benefit for such investors? How does acceptance shares work in such cases?

      Yes. Retails category investors get more benefit.
      Keep in your demat account shares worth less than 2 lac market value to be eligible as a retail investor.
      Then Participate in the buyback.
      You will get a better buyback acceptance because of the 15% reservation.
      In this case, you can expect abt 50% acceptance.

      Please reply my query sir that i had 1739 shares in my demat account as on record date and out of them I sold 1289 shares and bought 50 shares after record date , currently I am holding 500 shares including 50 shares bought after record date, if I tender full 500 shares including additional 50 shares ( bought after record date) in buyback, will my submission get recjected Or not because I am tendering additional 50 shares bought after record date, please reply.

    I want to know that Can I tender more share in respect of eligible share for buyback means suppose I have 1000 share of any company before record date and my eligible share for buyback as per accepting ratio of 50% is 500 , can I tender full 1000 share for buyback.

    Wipro buyback –

    Postal ballot result has been announced by company on exchanges.

    Now record date may come any time on exchange

      Total Buyback 4.16 %
      15% reserved for retail investors as per SEBI = 0.624 % of total equity
      <2 Lks investors as on Sep'20 – 2.26 % (Might go up since a lot of new small investors may like to buy shares for Buy back)
      Minimum acceptance ratio = 27.6 % (provided 2.26% shouldn't go up & all retailers render their shares for buyback)

      * Experts may please correct me if data is wrong.

    bought 250 shares at 342 for buyback lets see how it goes will keep you guys updated.

    *Motilal Oswal Financial Services on Wipro buyback:*

    Retail investors, looking for a short-term opportunity, can buy the shares of Wipro (up to the value of Rs 2 lakh – as on the record date) from the open market and tender them in the buyback offer.

    “Based on the last two buybacks of Wipro and very low retail shareholding, we expect the acceptance ratio to remain high in the range of 40-60 percent which could give a potential return of 7-11 percent (pre-tax) with a time frame of 2-3 months (assuming one is able to sell the remaining un-tendered shares at the current levels of about Rs 340),” Motilal Oswal said.​

    one can start accumulating Wipro from here @340 for buyback purposes. and add slowly till 325.
    price is 17% lower than BB price of 400.

    Last time the buyback happened, the acceptance ratio was 52% I think. This time the size is lesser.
    I do not expect the acceptance ratio to cross 50% this time as well. The price at which the in accwpted shares were sold was abt 10-15% below. So for safety ( and wipro takes longer to buyback so money remains stuck longer), I think even 350 is not a good price to buyin, unless one is extremely bullish otherwise on wipro. 325 range is safer

      Can you explain how the accepted shares were sold at a price lower than the fixed buyback price? As it was a tender offer, so the price fixed by the co, would be the price at which shares would be bought back, right?

        YES, the shares which are not taken by the company have to be sold into the open market after the buyback finished. he is talking about that shares.

      Ayush. That was the autocorrect error.
      I meant unaccepted shares were sold in the mkt at that price

      Ya,
      U are right..last time the acceptance ratio was 52%

      And this time the buyback size is also less as compared to previous one!

    Promoters are also going to participate in buyback. In view of this , what is expected entitlement ration for retail investors.

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