This is the first instance in nearly three years that the company will be considering a buyback of equity shares. The last instance of Wipro doing so was back in June 2023.
Back in 2023, Wipro had carried out a ₹12,000 crore share buyback, between June 22 – June 30, repurchasing 26.96 crore equity shares or 4.91% of the total equity at a price of ₹445 per share. The price is not adjusted for the 1:1 bonus issue that the company had announced for shareholders in December 2024.During the third quarter results, Wipro’s management had reiterated that share buybacks would remain a key mechanism for returning cash to shareholders.
The company now holds nearly ₹41,000 crore in net cash or close to 20% of its market capitalization, compared to ₹28,000 crore at the time of its previous buyback, brokerage firm Investec wrote in a note on Thursday, April 9.
“Assuming a similar deployment of 20.4% of shareholders’ funds, Wipro could potentially undertake a buyback of around ₹16,000 crore,” Investec said, adding that the stock currently offers a Free Cash Flow Yield of 7.5% to 8% for financial year 2027 and 2028 respectively.
Shares of Wipro recovered from the lows of the day to end little changed at ₹203.18.
