Learning sharks-Share Market Institute

To know more about the Stock Market Courses Call Rajouri Garden at 8595071711, Noida 8920210950 or Paschim Vihar at 7827445731 

Pay Your fees Here

Admissions are open for this quarter. Use the link to register for any course Fee Payments

Share Market courses logo
Share Market Training Classes
Menu

Wipro share buyback: Record date on June 16; should you tender shares?

by

Wipro share buyback: The size of the buyback offer is 4.91 percent of total equity shares, which analysts believe is sufficient to achieve a satisfactory acceptance ratio in the retail category.

Wipro shares are in focus as June 16 is the record date for the IT major's fifth buyback in history. The record date is the cut-off date established by a company to determine which shareholders are eligible to participate in the buyback.
Wipro share buyback: Record date on June 16; should you tender shares?

The record date is the deadline set by a corporation to identify which shareholders are eligible for the repurchase. The stock was trading at Rs 388 on the NSE at 9:40 a.m., down 0.14 percent from the previous close.

  • “We believe that the acceptance rate will be higher than 60%.” According to ICICI Direct analysts, “retail acceptance has been in the range of 50-100 percent in the last four buybacks, with 100 percent three times.”
  • The acceptance ratio is the percentage of shares tendered or offered for repurchase by shareholders that the corporation is willing to accept. IIFL Securities anticipates an acceptance ratio of 10 to 15% for non-retail investors, based on 25-50 percent tendering by significant shareholders.

Should you tender your stock?

According to Ashish Gupta, an independent trader located in Singapore, individuals who hold the shares in their portfolio for the long term can tender them in the buyback and buy the accepted shares back based on the acceptance ratio.

“For example, if you own 500 shares, you can tender them all and assume the acceptance ratio is 8%, in which case 40 shares will be accepted at $445 each, leaving you with 460 shares.”

What experts are saying

Wipro’s stock has dropped 1.3 percent in 2023 and is down 8 percent in the last year. According to Bloomberg, the stock has 12 Buy calls, 17 Hold calls, and 17 Sell calls, with a 12-month target price of Rs 391, which is only 1.5 percent higher than the current market price.

  • With the prognosis for the IT services company being poor at the moment, analysts feel the stock is unlikely to provide favourable returns.
  • For example, Kotak Institutional Equities has maintained a “reduce” recommendation on the stock, with a target price of Rs 360 per share.
  • Wipro reported a 0.6 percent fall in QoQ constant currency (CC) sales, matching the lower end of its guidance band.

The company has reduced its sales expectations for FY2024-25e by 1-2 percent, resulting in a 3-4 percent drop in earnings per share.

Look at more info: https://learningsharks.in/

Follow us on insta” http://learningsharks/

Skip to content