Wipro Buyback 2023

[iamshrimohan]

On April 27, Wipro’s Board of Directors approved a plan to buy back Rs 12,000 crore worth of equity shares from shareholders. This is a method used by companies to reward their shareholders. The company intends to purchase up to 26,96,62,921 equity shares, which is equivalent to 4.91 percent of the total number of equity shares on a proportionate basis through a tender offer at a price of Rs 445 per equity share. The buyback price represents a premium of nearly 19 percent compared to the last traded price of Wipro. In addition, members of the promoter and promoter group of the company will also participate in the buyback plan.

Please find the company announcement here.

[iamshrimohan]

Buyback Mathematics

Current Price (28/04/2023)		Rs. 385
Retail Quota		Rs. 2,00,000
Number of Shares		519
Investment Value		Rs. 1,99,815

Profitability at various acceptance ratios:

Acceptance Ratio		10%	20%	30%	40%	50%	60%	70%	80%	90%	100%
Shares Tendered		51	103	155	207	259	311	363	415	467	519
Profit (in ₹)		3,060	6,180	9,300	12,420	15,540	18,660	21,780	24,900	28,020	31,140
ROI		1.53%	3.09%	4.65%	6.22%	7.78%	9.34%	10.90%	12.46%	14.02%	15.58%

Note:

1. Holding value should be less than Rs. 2,00,000 to classify as Retail.
2. The returns are absolute in nature (not annualized).
3. The computation assumes the price post buyback RD would be the same as CMP.

Do share your views on the same!

– Shrimohan J.
Product Operations @ Dhan

[amit]

Let’s revisit one of the recent TCS Buyback, 2022

Let’s say, someone bought 44 shares (Rs. 2L) before the Record Date at Rs. 3,857 to earn some guaranteed returns in the buyback.

Now, on 01-APR-2022, TCS announced 26% acceptance ratio, which means he successfully sold 11 shares at Rs. 4,500 making profit of Rs 7,073.

And remaining 33 shares he is still holding as on 28-MAY-2023.

Hope this information helps!!

[iamshrimohan]

Please find the below mentioned schedule for the Wipro Buyback.