Wipro’s Rs 15,000 crore share buyback: Should you participate or avoid?

IT services major Wipro has announced its biggest-ever share buyback worth Rs 15,000 crore. However, lacklustre Q4 earnings dampened sentiment on Dalal Street, with the stock falling 4% over two sessions.

The company set the buyback price at Rs 250 per share, a 22% premium to Friday’s closing price of Rs 204.32. This is Wipro’s first buyback announcement in nearly three years.

Wipro's board approved the plan to buy back up to 60 crore shares, representing 5.7% of the total paid-up share capital, for an aggregate amount not exceeding Rs 15,000 crore. The buyback will be done via the tender route, and all shareholders on the record date, including those who received the equity shares after cancelling their American Depository Receipts (ADR), will be eligible to take part in the corporate action.

Wipro said that promoters and promoter groups have indicated their intention to participate in the proposed buyback. The record date and other timelines will be announced soon.

Also read: Wipro promoters to join Rs 15,000 cr buyback. What it means for retail investors

Should you participate in Wipro's Rs 15,000-crore share buyback?

The announcement reflects management's intent to return surplus cash to shareholders and may support near-term sentiment in the stock, said Uttam Kumar Srimal, Senior Research Analyst at Axis Securities. The analyst estimates the acceptance ratio to be in the range of 45-50% for retail investors, and 5-7% for non-retail investors.

Harshal Dasani, Business Head at INVasset PMS, said that Wipro’s Rs 15,000-crore buyback looks attractive on the surface, but investors should treat it as a tactical opportunity rather than a decisive bullish signal. He noted that the 19% premium marks meaningful support for the stock and underlines Wipro's balance-sheet strength.

However, he noted that the buyback comes alongside a soft operating backdrop, with Q4 revenue missing estimates and net profit slipping to Rs 3,502 crore. “For shareholders, the key question is not whether the price is attractive, but how many shares will actually get accepted,” he said.

“Promoters have indicated they will participate, which can reduce the acceptance ratio for public investors. That means the buyback should not be seen as a clean arbitrage trade. Investors with a near-term trading mindset can consider participating, especially if their acquisition cost is well below Rs 250. Long-term investors, however, should focus less on the buyback premium and more on whether Wipro can convert its $3.5 billion quarterly deal wins into faster growth. Until that visibility improves, the buyback is helpful, but not a complete investment case,” Dasani added.

With an interim dividend of Rs 11/share announced earlier and the latest buyback, Wipro’s total capital return to shareholders stands at nearly 88% for a 3-year period ending FY26, bringing it in line with larger Indian peers, Nomura said. The brokerage also raised its EPS estimates for the company by 1-2% following the buyback.

"This is broadly in line with past buybacks (around 4–5% of equity), implying mid-single-digit EPS accretion assuming full execution. Combined with dividends, the three-year payout ratio stands at around 88%, above its stated policy," said Motilal Oswal Financial Services.

Wipro Q4 earnings

Wipro announced the share buyback along with its earnings for the January-March quarter of the financial year 2026. The IT major's consolidated net profit declined 2% YoY to Rs 3,502 crore during the period under review, while revenue from operations increased 8% YoY to Rs 24,236 crore.

However, Wipro's core IT services segment showed limited traction. Revenue stood at $2.65 billion, growing just 0.6% quarter-on-quarter and 2.1% year-on-year. On a constant currency basis, IT services revenue rose 0.2% sequentially but declined 0.2% on an annual basis, highlighting weak underlying demand.

Wipro shareholding pattern

Promoters and the promoter group held a 73% stake in the company, while the remaining 27% was with the public and others, according to Wipro’s shareholding pattern as of December 31, 2025.

Billionaire Azim Premji was the largest individual promoter with over a 4% stake, while Executive Chairman Rishad Premji held 0.13%.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)