IT solutions giant Wipro Ltd. has announced a significant equity share buyback program valued at Rs 15,000 crore. The announcement came on April 16, 2025, alongside the company's financial results for the quarter and fiscal year ending March 31, 2025.
Buyback Details and Premium Offer
The company's board of directors has approved the repurchase of approximately 60 crore equity shares, representing 5.7% of its total paid-up equity share capital. Wipro plans to acquire these shares from existing shareholders through a tender offer at a price of Rs 250 per share. This offer price signifies a 19% premium compared to the company's previous closing share price of Rs 210.20.
This substantial buyback aims to return a significant portion of the company's cash to its shareholders. The proposal is currently subject to approval from shareholders via postal ballot.
Financial Position and Market Expectations
As of March 31, 2026, Wipro reported robust cash and cash equivalents totaling Rs 26,778 crore, underscoring its strong financial health. Aparna Iyer, Chief Financial Officer at Wipro, commented on the company's financial strategy, stating, “We have continued to invest in our clients, capabilities and people and maintained our margins in a narrow band. Our cash conversion continues to remain strong with operating cash flows at 112.6 per cent of net income for FY26.”
She further added, “During the year we have returned a substantial portion of our cash generated to shareholders in the form of dividend. Additionally, in our recently concluded board meeting, the Board of Directors announced buyback of Rs 15,000 crore at a price of Rs 250, subject to shareholder approval.”
While the buyback price aligned largely with market expectations, the total size of the buyback fell short of some analyst predictions. Overseas brokerage firms, including Morgan Stanley and Investec, had anticipated a larger buyback in the range of Rs 16,000 to Rs 18,500 crore, given Wipro's considerable cash reserves as of December 31, 2025.