Witness the market’s captivation as Wipro’s astounding 12000 crore share buyback programme achieves a remarkable 77.40% acceptance ratio among retail participants. In just 18 days, investors have reaped the rewards of double-digit returns, defying the negative stock performance of the past year.
Key Highlights
- Despite the negative stock performance, investors witnessed a significant impact on Wipro’s Limited share price through its successful buyback programme.
- In the recently concluded Rs 12,000-crore share buyback programme, Wipro achieved an acceptance ratio of 77.40 per cent among retail.
- The acceptance ratio remained consistent with the trend observed in Wipro’s previous four repurchase offers, ranging from 50 to 100 percent.
- Retail or small shareholders were categorised as those holding Wipro shares valued at less than Rs 2 lakh as of the record date.
- Investors will receive the payout for the buyback on July 5, along with the shares that were not accepted in the programme.
- The buyback programme commenced on June 16 and concluded on June 30, providing investors with an opportunity to earn double-digit returns of 16.7 percent from the closing price of Rs 381.30 on the record date.
- This buyback programme resulted in the elimination of 4.91 percent of the company’s shares.
- Shares of Wipro have been underperforming within the information technology sector, with a subdued quarterly performance and disappointing growth guidance.
Negative Stock Returns and Quick Buyback Gains
The Wipro stock has experienced negative returns of over 7 percent in the past year. However, the recent buyback programme provided investors with an opportunity to earn double-digit returns within just 18 days.
High Acceptance Ratio in the Retail Category
During the Rs 12,000-crore share buyback programme, Wipro achieved a significant acceptance ratio of 77.40 percent among retail participants. This indicates that for every 500 shares surrendered by a retail investor, 387 were accepted for buyback. The acceptance ratio aligns with the trend observed in Wipro’s previous repurchase offers.
Retail Shareholders and Payout Details
Retail or small shareholders were defined as individuals holding Wipro shares valued at less than Rs 2 lakh as of the record date. Investors will receive the buyback payout on July 5, along with the shares that were not accepted in the program.
Buyback Programme Timeline and Double-Digit Returns
The buyback programme commenced on June 16 and concluded on June 30, providing investors with an attractive opportunity to earn double-digit returns of 16.7 percent. This percentage represents the difference between the buyback price of Rs 445 per share and the closing price of Rs 381.30 on the record date.
Impact on Company Shares and Market Performance
The buyback programme resulted in the elimination of 4.91 percent of the company’s shares. As per the Wipro share buyback history, its shares have been underperforming within the information technology sector, with a subdued quarterly performance and disappointing growth guidance. However, the recent share buyback programme and its result have stunned everyone.
Conclusion
The strong acceptance ratio and double-digit returns achieved through Wipro’s share buyback programme signify positive implications for the economy, the company, and investors.
From an economic perspective, Wipro’s market Cap reflects its valuation based on the total market value of its outstanding shares. The successful buyback programme reflects investor confidence in Wipro’s financial strength and growth potential. It indicates that investors believe in the company’s ability to generate returns and contribute to market stability. Wipro’s share buyback programme offered a significant contrast to the negative stock performance experienced by Wipro in the past year.
Sources:
Moneycontrol.com
economictimes.indiatimes.com
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