Wipro Limited is a leading global information technology, consulting and business process services company.
They harness the power of cognitive computing, hyper-automation, robotics, cloud, analytics and emerging technologies to help our clients adapt to the digital world and make them successful.
A company recognized globally for its comprehensive portfolio of services, a strong commitment to sustainability and good corporate citizenship, we have over 160,000 dedicated employees serving clients across six continents. Together, we discover ideas and connect the dots to build a better and a bold new future.
Wipro, one of the largest IT software services companies, opened its shareholding share on December 29. The company aims to raise Rs 9,500 crore with a return offer, which will close on January 11, 2021.
The lower price of its 23.75-crore equity offer (representing 4.16 per cent of total payments) is set at Rs 400, a premium of 4.5 per cent on Monday’s closing price and a 6.5 per cent premium on the closing price of -October 13. The lower price premium stood at 11 percent compared to the previous period set for a rebate. The Board approved the granting of a return on October 13.
Experts advise temporary investors to submit their tenders for a rebate offer.
“We believe that investors and especially short-term trading investors should give their shares in open offerings considering that returns occur at a higher price at current prices and the acceptance rate may be better than TCS in the sales segment. Given lower sales in stock,” Jyoti Roy, DVP Equity Strategist at Angel Broking told Moneycontrol.
Prashanth Tapse, AVP Research in Mehta Equities expects the return of Wipro to have a positive acceptance (AR) rate of 40-50 per cent for retail investors.
Buy Back Offer Deal
| Buyback Type: | Tender Offer |
| Buyback Record Date: | 11 DEC 2020 |
| Buyback Opening Date: | 29 DEC 2020 |
| Buyback Closing Date: | 11 JAN 2020 |
| Buyback Offer Amount: | ₹ 9500 Crores |
| Date of Board Meeting approving the proposal: | 13 OCT 2020 |
| Date of Public Announcement: | 13 OCT 2020 |
| Buyback Offer Size: | 4.16% |
| Buyback Number of Shares: | 23,75,00,000 |
| Price Type: | Tender Offer |
| FV: | 2 |
| Buyback Price: | ₹ 400 Per Equity Share |
Details of Buyback
The Board of Directors of Wipro Limited at its meeting held on October 13, 2020 has approved a proposal to buyback up to 23,75,00,000 equity shares of the Company for an aggregate amount not exceeding Rs. 95,00,00,00,000/- (hereinafter referred to as the “Buyback Size”), being 4.16% of the total paid-up equity share capital, at a price of Rs. 400/- per equity share (hereinafter the “Buyback Price” and such buyback, the “Buyback”).
Salient financial parameters
| Particulars(Cr) | Mar-15 | Mar-16 | Mar-17 | Mar-18 | Mar-19 | Mar-20 |
| Sales | 46,951 | 51,244 | 55,448 | 54,487 | 59,019 | 61,138 |
| Expenses | 36,652 | 40,448 | 44,128 | 44,100 | 47,406 | 48,795 |
| Operating Profit | 10,299 | 10,796 | 11,321 | 10,387 | 11,613 | 12,342 |
| OPM % | 22% | 21% | 20% | 19% | 20% | 20% |
| Other Income | 2,450 | 2,752 | 2,623 | 2,550 | 2,614 | 2,728 |
| Interest | 350 | 558 | 594 | 583 | 738 | 733 |
| Depreciation | 1,175 | 1,496 | 2,310 | 2,112 | 1,947 | 2,086 |
| Profit before tax | 11,224 | 11,494 | 11,039 | 10,242 | 11,542 | 12,252 |
| Tax % | 22% | 22% | 23% | 22% | 22% | 20% |
| Net Profit | 8,661 | 8,908 | 8,493 | 8,003 | 9,004 | 9,722 |
| EPS in Rs | 12.26 | 13.52 | 13.1 | 13.27 | 14.92 | 17.02 |
| Dividend Payout % | 34% | 17% | 6% | 6% | 7% | 6% |
Profit from the buyback on the bases of acceptance Ratio
Buy 500 Shares at CMP of Rs.375( 2,00,000/375=500)
| Acceptance Ratio | 33% | 50% | 75% | 100% |
| Amount Invested in Buyback | 187500 | 187500 | 187500 | 187500 |
| No. of Shares buyback | 165 | 250 | 375 | 500 |
| BuyBack Profit | 4125 | 6250 | 9375 | 12500 |
| Profit | 2.20% | 3.33% | 5.00% | 6.67% |
How to Participate in buyback?
| 1. Firstly, to be eligible for the buyback the investor should have shares of Wipro Buyback 2020 in demat or physical form as on record date [11.12.2020]. |
| 2. Once you have shares in demat, you can participate in the buyback process which is opening from [29.12.2020 to 11.1.2021], by selling your shares through your broker on NSE or BSE. |
| 3. Then on [Not Announced]the payment will be given to you for accepted shares and unaccepted shares will be returned to your demat account. |
