Wipro Share Buyback: Wipro’s worst performing shares in Nifty in the last one year will be watched today. The company is going to do share buyback of Rs 12,000 crore whose record date is tomorrow and investors can get good profits in this. Today is the last date to be eligible to participate in the Wipro Buyback Offer. Tomorrow 16th June is his record date. The general acceptance ratio in this share buyback offer is expected to be around 4 percent. But in the retail category, this figure can touch 40 percent.
Sriram Velayudhan, IIFL Institutional Equity, said, “Investors holding shares of Wipro below Rs 2 lakh on the record date will be considered as small investors. Therefore, to take advantage of arbitrage, the value of the holding should be less than Rs 2 lakh. Retail acceptance in last four share buybacks. 50 percent to 100 percent. The three buybacks had a ratio of 100 per cent. So investors can buy shares to participate in the buyback.
Based on shareholding data, the domestic brokerage believes that this time Wipro’s share buyback may see an acceptance ratio of around 40 per cent. However, everything will become clear once the final letter of offer comes. Wipro wants to buy about 26.97 crore shares at Rs 445 per share, a 12.2 per cent premium to Wednesday’s closing price of Rs 396.
This buyback will wipe out 4.91 per cent of the company’s shares and 15 per cent reservation has been kept for small investors with holdings of less than Rs 2 lakh. The stock is currently trading above 50 DMA but trading below 200 DMA. The 14-day RSI is hovering above 50. If this stock crosses the level of Rs 405, then it will rapidly reach Rs 420 in the coming days.
How was Wipro’s stock after the buyback?
Wipro shares were up just one per cent a month after the record buyback date in 2016. But in the next 6 months, this share came down to 15 per cent. In the month following the record date of Wipro’s buyback offer in 2017, the share price gained two per cent, while the stock gained 3 per cent in the six months. In 2019, a month after the buyback record date, the share price fell 7 percent. The decline continued and the stock fell 14 percent in three months and 12 percent in six months. After the share buyback in 2020, the stock gained 26 per cent in a month. It has increased by 16 per cent in three months and 53 per cent in six months.