Wipro Limited Buyback Review, Offer Details, Price, Dates, Size & more
Last Updated Date: Aug 22, 2022In this article, we will discuss about Wipro Limited Buyback offer, buyback price, buyback size, Wipro Buyback record date, company financial, buyback necessity and its impact on company.
To track the real time share price of this Buyback, click on this link – Wipro Limited Share Price
Wipro Limited Buyback Details
| Buyback Type | Tender Offer |
| Opening Date | [●] |
| Closing Date | [●] |
| Buyback Offer Amount | Rs.95,00,00,00,000/- |
| Buyback No. of Shares | 23,75,00,000 |
| Face Value | Rs. 2 |
| Date of Buyback Approval | October 13, 2020 |
| Date of Public Announcement | November 19, 2020 |
| Buy Back Price | Rs.400/- |
| Buy Back Premium | 40.01% |
| Date of Board Meeting | October 13, 2020 |
Wipro Buyback Opening and Closing Date
The starting and closing date of this buyback is NA.
Wipro Buyback Cash Offer
The Cash Offer to Buy-back up to 23,75,00,000 fully paid-up equity shares of the Company of face value of Rs. 2 each, representing 4.16% of the total number of equity shares.
Wipro Buyback Record Date
The decided record date is Friday, DECEMBER 11, 2020.
Wipro Buyback Price
At a price of Rs.400/- (RUPEES FOUR HUNDRED ONLY) per Equity Share.
Wipro Buyback Size
At a buyback price of Rs.400/- payable in cash for an aggregate consideration not exceeding Rs.95,00,00,00,000/-.
Wipro Limited Buyback Acceptance Query
You can check for Buyback Acceptance query here. Just click on the given link and it will redirect you to buyback acceptance query page.
Wipro Limited Buyback Acceptance Ratio
Find profit & profit percentage based on various acceptance rate, The profit is calculated based on 1000 shares.
| Acceptance Ratio | Total Shares Accepted | Buyback Price | Buyback Amount | Profit | Profit% |
| 20% | 200 | 400 | 80000 | 8830 | 2.48% |
| 40% | 400 | 400 | 160000 | 17660 | 4.96% |
| 60% | 600 | 400 | 240000 | 26490 | 7.44% |
| 80% | 800 | 400 | 320000 | 35320 | 9.93% |
| 100% | 1000 | 400 | 400000 | 44150 | 12.41% |
Profit is calculated from 27th Nov 2019 share price i.e. Rs.355.85 per share of Wipro Limited.
According to the above table, if a shareowner applies for 1000 shares of Wipro limited & gets 20% acceptance from the company and the owner with 1000 shares will sell 200 shares @ Rs.400 per share & receive Rs.8830 as profit amount & 2.48% profit percentage on selling these 200 shares back to the company.
Similarly, if the owner gets 60% acceptance of share from the company, the owner will sell 600 shares @ Rs.400 & receive a profit of Rs.26490 @ 7.44% profit percentage.
Wipro Limited Buyback Overview
Wipro Limited (“Wipro” or the “Company”) an Indian company incorporated on December 29, 1945, is a leading global information technology, consulting and business process services company. The Company has over 1,70,000 dedicated employees serving clients across six continents.
The name of the Company was changed from Western India Vegetable Products Limited to Wipro Products Limited on June 7, 1977, and subsequently to Wipro Limited on April 28, 1984. The Company has its registered office situated at Doddakannelli, Sarjapur Road, Bengaluru 560 035, India.
The Company shifted its registered office from the State of Maharashtra to the State of Karnataka on July 10, 1996. The Equity Shares of the Company were listed in the year 1995 on the NSE (Code: Wipro) and an application for listing of equity shares was filed with BSE in the year 1946-47 (Code: 507685). The ADRs of the Company were listed on NYSE (Code: WIT) in the year 2000. The ISIN Number of the Company is INE075A01022.
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Company Finances – Wipro Limited
The salient financial information of the Company as extracted from the audited standalone financial statements for the three years ended March 31, 2019, March 31, 2018 and March 31, 2017 are as under:
[In Rs. Lakhs]
| Particulars | Period Ended September 30 (Audited) | 12 Months period ended March 31 (Audited) |
||
| 2020 | 2020 | 2019 | 2018 | |
| Total Income | 25,69,404 | 52,88,357 | 50,69,237 | 47,18,960 |
| Total Expenses (excluding finance cost, depreciation & amortization) | 52,88,357 | 40,19,960 | 39,36,271 | 35,75,615 |
| Interest | 20,264 | 53,523 | 52,496 | 38,430 |
| Depreciation and amortization expenses | 67,263 | 1,14,108 | 93,429 | 1,01,483 |
| Profit before tax | 5,65,186 | 11,00,766 | 9,87,041 | 10,03,432 |
| Provision for tax (including Deferred Tax) |
1,21,531 | 2,32,701 | 2,25,647 | 2,31,148 |
| Profit /(Loss) after tax | 4,43,655 | 8,68,065 | 7,61,394 | 7,72,284 |
| Equity Share Capital | 1,14,299 | 1,14,267 | 1,20,679 | 90,476 |
| Other Equity | – | – | – | – |
| Networth | 51,54,559 | 46,45,370 | 49,39,199 | 42,26,259 |
| Total Debt (Excluding working capital loans) | 3,279 | 4,396 | 7,573 | 1,15,512 |
Wipro Limited Buyback Dates
| Date of Board Meeting approving the Buyback | October 13, 2020 |
| Date of publication of Public Announcement for Buyback | November 19, 2020 |
| Record Date for determining the Buyback Entitlement and the names of Eligible Shareholders | December 11, 2020 |
| Buyback Opening date | – |
| Buyback Closing date | – |
| Last Date of verification of Tender Forms by the Registrar | – |
| Last date of intimation regarding acceptance / non-acceptance of Tendered Equity Shares to the BSE Limited by the Registrar | – |
| Last date of Settlement of Bids on the BSE Limited | – |
| Last date of return of unaccepted Equity Shares by BSE Limited | – |
| Last date of Extinguishment of Equity Shares | – |
Details of Public Announcement
In accordance with Regulation 7(i) of the Buyback Regulations, the Company has made the Public Announcement dated November 18, 2020 for the Buyback of Equity Shares published on November 19, 2020 in the following newspapers:
| Publication | Language | Edition |
| Business Standard | English | All editions |
| Business Standard | Hindi | All editions |
| Hosa Digantha | Kannada | Bengaluru |
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Necessity of Wipro Limited Buyback
The Buyback is being undertaken for the following reasons:
- The Buyback will help the Company distribute surplus cash to the Equity Shareholders broadly in proportion to their shareholding, thereby, enhancing the overall return to Equity Shareholders;
- This Buyback, which is being implemented through the Tender Offer route as prescribed under the Buyback Regulations, involves a reservation of up to 15% of the Buyback Size for Small Shareholders. The Company believes that this reservation of up to 15% for Small Shareholders would benefit a large number of the Company’s public shareholders, who would be classified as Small Shareholders for the purposes of the Buyback;
- The Buyback would help in improving financial ratios like earnings per share and return on equity, by reducing the equity base of the Company; and
- The Buyback gives the Eligible Shareholders the choice to either participate in the Buyback and receive cash in lieu of their Equity Shares which are accepted under the Buyback, or not to participate in the Buyback and get a resultant increase in their percentage shareholding in the Company post the Buyback, without additional investment.
Impact of Wipro Limited Buyback on the Company
The Buy-Back is not likely to cause any material impact on the profitability or earnings of the Company except to the extent of reduction in the amount available for investment, which the Company could have otherwise deployed towards generating investment income.
Assuming that the response to the Buyback is to the extent of 100% (full Acceptance) from all the Eligible Shareholders up to their Buyback Entitlement, the aggregate shareholding of the Promoter and Promoter Group post completion of the Buyback may increase from 74.01% to [●]%.
Also, if none of the public shareholders participate and only the Promoter and Promoter Group participate to the extent of the Buyback Entitlement, their shareholding may reduce from 74.01% to [●]% of the total equity share capital of the Company.
The debt-equity ratio following the Buyback, both on standalone and consolidated basis, shall be compliant with the permissible limit of 2:1 prescribed by the Companies Act even if the response to the Buyback is to the extent of 100% (full Acceptance) from all the Eligible Shareholders up to their Buyback Entitlement.
Salient financial parameters consequent to the Buyback based on the latest audited standalone financial statements for the period ended on March 31, 2020 are as under:
| Parameters (based on audited standalone financial statements for year ended March 31, 2018) | Pre Buy-back | Post Buy-back (Assuming Full Acceptance) |
| Net worth (Rs in Lakhs) | 51,54,559 | 42,04,559 |
| Return on Net worth (%) | 17.21% | 21.10% |
| Earnings Per Share (Rs) (Basic) | 7.79 | 8.13 |
| Book Value per Share (Rs) | 90.19 | 76.76 |
| P/E as per the latest audited standalone financial statements | 43.04 | 41.24 |
| Total Debt / Equity Ratio | 0.09 | 0.12 |
Basis of Calculating Wipro Buyback Price
The Buyback Price has been arrived at after considering various factors such as
- the share price benchmarks on the NSE, the stock exchange where the maximum volume of trading in the Equity Shares is recorded,
- the net worth of the Company, and
- the impact on the earnings per Equity Share.
More on Wipro Buyback Price Calculation
The Buyback Price represents a premium of 40.01% over the volume weighted average market price of the Equity Shares on the NSE for the 60 (sixty) trading days preceding the date of intimation to the Stock Exchanges of the Board Meeting to consider the proposal of the Buyback and 25.84% over the volume weighted average market price of the Equity Shares on the NSE for the 10 (ten) trading days preceding the date of intimation to the Stock Exchanges of the Board Meeting to consider the proposal of the Buyback.
The closing market price of the Equity Shares as on the date of intimation of the Board Meeting for considering the Buyback, being October 7, 2020, was Rs.335.30 on NSE and Rs.335.25 on BSE.
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Source of Funds for the Buyback
The funds for the Buyback will be sourced from current balances of cash and cash equivalents and/or internal accruals of the Company. The Company does not intend to raise additional debt for the explicit purposes of the Buyback. Borrowed funds will not be used for the Buyback.
This Company shall transfer from its free reserves, a sum equal to the nominal value of the Equity Shares bought back to the capital redemption reserve account, and details of such transfer shall be disclosed in its subsequent audited financial statements. The funds borrowed, if any, from banks and financial institutions will not be used for the Buyback.
Wipro Limited – Manager to the Buyback
| JM Financial Limited 7th Floor, Cnergy, Appasaheb Marathe Marg, Prabhadevi, Mumbai – 400025, Maharashtra, India Tel.: +91 22 6630 3030 Fax: +91 22 6630 3330 Email: wipro.buyback2019@jmfl.com Website: www.jmfl.com Contact Person: Ms. Prachee Dhuri SEBI Regn. No.: INM000010361 Validity Period: Permanent Corporate Identification Number: L67120MH1986PLC038784 |
Wipro Limited – Registrar to the Buyback
|
Karvy Fintech Private Limited
Karvy Selenium, Tower- B, Plot No 31 & 32, Financial district, Nanakramguda, Gachibowli, Hyderabad, Telangana State, 500032, India. Tel: +91 40 67162222 Fax: +91 40 23431551 Email: wipro.buyback2019@karvy.com Website: https://karisma.karvy.com Contact Person: Mr. M. Murali Krishna SEBI Regn. No.: INR000000221 Validity Period: Permanent Corporate Identification Number: U72400TG2017PTC117649 |
Wipro Limited Contact Details
| Company Contact Details |
| WIPRO LIMITED Registered Office and Correspondence Address: Doddakannelli, Sarjapur Road, Bengaluru – 560 035, India. Tel. No.: +91 80 2844 0011; Fax: +91 80 2844 0054 E-mail: corp-secretarial@wipro.com; Website: www.wipro.com Corporate Identification Number (CIN): L32102KA1945PLC020800 Contact Person: Mr. M Sanaulla Khan, Company Secretary; Tel. No.: +91 80 2844 0011 (ext: 226185); Fax: +91 80 2844 0054; E-mail: sanaulla.khan@wipro.com |
Wipro Limited Buyback News
News 1 – Buyback PDF / Letter of Offer [Download]
News 2 – Wipro Ltd – Public Announcement
FAQs of Wipro Limited Buyback
What is the Wipro Limited Buyback Period?
Wipro Limited Buyback Period is briefly the time interval starting from the date of declaration of results of the postal ballot through remote e-voting i.e. NA. The period basically ends on the date of payment of consideration to Eligible Shareholders who participated in the Buyback, i.e. NA.
What type of buyback is Wipro Limited Buyback?
This company has chosen the route of Tender offer to repurchase the shares from the eligible shareholders. Tender offer route is one of the Two Routes generally chosen by the companies, i.e. Tender Offer and Open Market Through Stock Exchanges.
What is the Wipro Limited Buyback Offer?
Wipro Limited Buyback Offer refers to the number of shares the company plans to buy back from the eligible shareholders. Herein, the company proposes to buyback 23,75,00,000. Fully paid up Equity shares, adhering to the buyback price.
When Wipro Limited Buyback offer will start?
As per the released schedule, the Wipro Limited Buyback offer will start on NA. This is the opening date from when the Buyback will open for all shareholders. You will find the updated records of Wipro Limited Buyback at all times, we ensure you have access to the right data.
When is the closing date of Wipro Limited Buyback?
For ease in access to the dates and related aspects, we have segregated the closing date of Wipro Limited Buyback. The buyback would close on NA. The closing date is the last day for which the Buyback shall be open for the shareholders.
What is the offer price for Wipro Limited Buyback?
The amount at which the shares are taken back by the company is referred to as Wipro Limited Buyback offer price. Herein, each and every fully Paid-up equity share is priced at Rs.400, the price paid to each eligible shareholder.
What is the record date for Wipro Limited Buyback offer?
Record date of Wipro Limited Buyback is DECEMBER 11, 2020. Record date is generally the day when eligible shareholders are declared. Furthermore, complying with Buyback regulations, letter of offer and Tender form is sent to the eligible shareholders.
What is the issue size of Wipro Limited Buyback?
Wipro Limited Buyback Size is Rs.95,00,00,00,000 and is the total worth of Equity Shares the company plans on taking back. This amount is obtained from the total number of equity shares, multiplied by the Buyback price.
What is the necessity for Wipro Limited Buyback?
Objective of the Wipro Limited Buyback is to enhance the total return made by equity shareholders. Herein, the excess funds are given to the equity shareholders, which are over and above its ordinary capital requirements and in excess of any current investment plans. Through buyback, the company will distribute the surplus cash to shareholders as per their holding proportion.
Who is the Registrar to Wipro Limited Buyback offer?
The designated registrar of Wipro Limited Buyback is Karvy Fintech Private Limited. You can find all the details related to the registrar in this report and contact them if you have any queries. You can check the details of the registrar, contact person, email address and more.
Who is the Manager to the Wipro Limited Buyback offer?
Manager to the Wipro Limited Buyback is JM Financial Limited. Manager basically ensures that the company following up buyback strictly adheres to and in conformity with the provisions of the Companies Act and Buyback Regulations.
How to check Wipro Limited buyback acceptance ratio?
Acceptance ratio is basically the proportion of shares the company accepts, to the final number of shares tendered. It refers to how much the company would buyback and how profitable it would be for you. You can also check how much profit (%) you will earn. Click on the link and check on the website page.
Where to find Wipro Limited Buyback Dates / Events?
You can check the table for the list of events, as designed for the buyback. This article is your one and final destination to check all the Wipro Limited Buyback information. You will encounter a section exclusively set to record the dates, in this article, referred to as Wipro Limited Buyback Dates.
What can be the Impact of Wipro Limited Buyback on the Company?
The Buyback will not in any manner impair the ability of the Company to pursue growth opportunities or meet its cash requirements for business operations. The Buyback is expected to contribute to the overall enhancement of shareholder value and result in an increase in the return on equity of the Company. This Buyback is being undertaken, inter alia, for helping the Company to return surplus cash to the Eligible Shareholders broadly in proportion to their shareholding.
Where to find complete details on Wipro Limited Buyback?
As mentioned already, this page would give you every single detail about this buyback. Also, you find the link to download the Draft / Letter of Offer. Each and every section is vividly and carefully placed, giving you insights into all major as well as minor aspects of the ratio. The article is also inclusive of all the links.
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