Wipro Share Price Declines 4% on Record Date for ₹15,000-Crore Buyback

Wipro Share Price Falls 4.17% Amid Record Date for ₹15,000-Crore Share Buyback

The share price of IT major Wipro fell as much as 4.17% in Friday's trading session, as the company's ₹15,000-crore share buyback reached its record date. The share price opened at ₹191.52 apiece today, compared to the previous close of ₹204.32 on Thursday.

Wipro's share buyback details are as follows:

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To be eligible for the buyback, investors had to purchase Wipro shares by June 4, as only shareholders whose names appeared in the company's records and whose shares were credited to their demat accounts by the record date of June 5 qualify to participate. Given SEBI's T+1 settlement framework, investors were required to buy the stock at least one trading day before the record date to ensure timely credit of shares. Consequently, June 4 served as the last date for investors to acquire Wipro shares and remain eligible for the corporate action.

Announced in April, the buyback offers shareholders a premium of roughly 22.5% over Thursday's closing price of ₹204. Wipro's board has approved the repurchase of up to 60 crore equity shares, representing nearly 5.7% of its paid-up equity capital. The buyback will be carried out through the tender offer route, allowing all eligible shareholders on the record date—including those who received shares following the cancellation of American Depository Receipts (ADRs)—to tender their holdings.

Although the record date has passed, Wipro is yet to announce the opening and closing dates for the tendering window. This marks Wipro's first buyback announcement since 2023. During its last buyback, carried out between June 22 and June 30, 2023, the company bought back 26.96 crore shares—equivalent to 4.91% of its outstanding equity—at ₹445 per share, resulting in a total payout of ₹12,000 crore. Notably, the buyback price has not been adjusted to reflect the 1:1 bonus issue that Wipro implemented in December 2024.

The share price trend of IT major Wipro has remained weak amid volatility in the Indian stock market. Wipro shares have shed 4.14% in a week and 2% in a month. Furthermore, the IT stock has declined 27% on year-to-date (YTD) basis and 21% in a year. The IT stock has failed to impress long-term investors by descending over 3% in three years and 28% in five years.

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