Wipro Buyback Alert: Key Details On IT Firm's First Share Repurchase In Three Years

Wipro Ltd. announced that its board will consider a share buyback proposal on 16 April, alongside the company’s fourth-quarter results for financial year (FY) 2025-26, according to a regulatory filing.

As per brokerage estimates, the buyback size can fall in the range of ₹16,000 crore to ₹18,500 crore.

If approved, this will be Wipro’s first buyback in three years. The company’s last repurchase was in 2023, a ₹12,000 crore buyback carried out between 22 June and 30 June. During that period, Wipro bought back 26.96 crore equity shares, representing 4.91% of its total equity, at a price of ₹445 per share.

This is also the first buyback since new buyback rules took effect on 1 April. At around 1:00 PM on Friday, Wipro Ltd shares were trading at ₹203 a piece, 0.12% up.

Why Is Wipro Ltd. Considering A Buyback?

Wipro Ltd is looking at a buyback because it has a lot of cash on its books. The company holds about ₹41,510 crore. That gives it enough comfort to return money to shareholders without hurting daily operations. It has also said it will distribute more than 70% of its net income between FY26 and FY28.

The timing matters too. The stock has fallen over 20% this year. A buyback can help steady the price. It may also improve investor confidence for now.

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Wipro Buyback Impact On Stock

Morgan Stanley pointed out a simple pattern in Wipro’s stock.

In most past buybacks, the stock moved up after the announcement. They looked at the last five cases. In four of them, Wipro did better than the BSE Sensex over the next one week. Over one month, this outperformance showed up in three cases.

A buyback can push the stock in the short term. But that usually doesn’t last. After the initial move, investors tend to shift their focus back to the company’s core performance and numbers.

Sources:

NDTV Profit

Moneycontrol

Republic TV

The Economic Times