Wipro share buyback: Returns possibilities for investors? 2 scenarios explained

Wipro Buyback: IT solutions player Wipro Ltd recently announced a buyback of Rs 15,000 crore, wherein the Bengaluru-based software company shall repurchase 60,00,00,000 equity shares (face value Rs 2 each equivalent to 5.7 per cent of total paid-up equity share capital) from its eligible shareholders at Rs 250 per share subject to necessary approvals.

This offer is at a 25 per cent premium to the market price as of April 24, 2026. As per the SEBI regulations, 15 per cent of the offer size (Rs 2,250 crore) is reserved for small shareholders holding shares up to a value of Rs 2 lakh as on the record date, which is yet to be announced by the company.

Based on the initial details of buyback, small investors of Wipro can tender a maximum of 800 equity shares (Rs 2,00,000/Rs250) in the issue. In the grey market, Wipro buyback Kostak application for Rs 2 lakh is trading at Rs 12,000, suggest some sources which did not wish to reveal their identity.

Wipro buyback: Acceptance Ratio

While the minimum acceptance ratio for small shareholders is currently calculated at 30.8 per cent based on the FY25 Annual Report—an increase from the 23.4 per cent floor cited in the 2023 offer letter—historical performance suggests a much more favourable outcome, said HDFC Securities in a recent report.

Following the 2023 buyback announcement, the actual acceptance ratio reached 78 per cent. The acceptance ratio is calculated based on 15 per cent reservation for the buyback of 5.7 per cent of paid-up equity, that is, at least 0.86 per cent of equity will be considered from retail investors (as on March 31, 2025) and resulting acceptance ratio (0.86/2.79).

Wipro buyback: Possible returns for investors

Given Wipro’s previous buyback trends and a relatively lean retail shareholding, HDFC Securities assume two investment scenarios, estimating profits in the range of Rs 11,325 to Rs 37,750 (based on the acceptance ratio from 30 per cent to 100 per cent):

1. On the conservative side, it assumes a relatively lower acceptance ratio than the previous offer, that is, 45-50 per cent. This presents a compelling short-term opportunity for retail investors, offering a potential return (net) of 8-9 per cent over a duration of 2–3 months.

2. On the aggressive side, there is a strong quantitative basis to project a high retail acceptance ratio in the range of 70–80 per cent (acceptance ratio was at 78 per cent in 2023). This presents a short-term opportunity for retail investors, offering a potential return (net) of 13–14% over a duration of 2–3 months.

"Given this track record of outperformance and the prospect of stable returns amidst current market volatility, the acceptance ratio is expected to remain significantly higher. Consequently, we recommend a tactical 'buy' for retail investors looking to optimise short-term capital allocation by participating in the upcoming offer," said HDFC Securities.

Wipro Q4 results

Wipro reported a 1.9 per cent YoY fall in the net profit at Rs 3,501.8 crore, while its revenue rose 7.7 per cent YoY to Rs 24,236.3 crore for the March 2026 quarter. Operating margins declined 20 bps to 17.3 per cent. In FY26, Wipro paid a dividend of Rs 11 per share, with a payout ratio to 88 per cent.

Wipro Target price

Strong traction in the UK’s BFSI sector and the deal momentum in Germany are expected to drive growth for Wipro. It is strengthening its AI-first strategy through a services-as-a-software approach under the AI-Native business & Platforms unit, while improving operational efficiency via productivity gains in fixed price contracts, cost-takeout initiatives, said Geojit Investments.

Near-term margin and revenue headwinds from two incremental months of salary hikes and the uneven ramp-up of newly won large deals, leading to quarterly volatility. We factor in the impact of Wipro’s share buyback, which is expected to reduce the average outstanding equity share base, resulting in 6 per cent EPS accretion in both FY27E and FY28E," it said with a 'hold' tag and a target price of Rs 219.