Wipro to consider first share buyback in three years along with Q4 results on April 16

This is the first instance in nearly three years that the company will be considering a buyback of equity shares. The last instance of Wipro doing so was back in June 2023.

By Hormaz Fatakia

Bengaluru-based IT services provider Wipro Ltd. has announced that it will be considering a buyback of equity shares at the time of its board meet on April 16.

April 16 will also be the day when the board will meet to consider its March quarter results.

This is the first instance in nearly three years that the company will be considering a buyback of equity shares. The last instance of Wipro doing so was back in June 2023.

Back in 2023, Wipro had carried out a ₹12,000 crore share buyback, between June 22 - June 30, repurchasing 26.96 crore equity shares or 4.91% of the total equity at a price of ₹445 per share. The price is not adjusted for the 1:1 bonus issue that the company had announced for shareholders in December 2024.

During the third quarter results, Wipro's management had reiterated that share buybacks would remain a key mechanism for returning cash to shareholders.

The company now holds nearly ₹41,000 crore in net cash or close to 20% of its market capitalization, compared to ₹28,000 crore at the time of its previous buyback, brokerage firm Investec wrote in a note on Thursday, April 9.

"Assuming a similar deployment of 20.4% of shareholders' funds, Wipro could potentially undertake a buyback of around ₹16,000 crore," Investec said, adding that the stock currently offers a Free Cash Flow Yield of 7.5% to 8% for financial year 2027 and 2028 respectively.

Shares of Wipro recovered from the lows of the day to end little changed at ₹203.18.