IT company Wipro
Wipro Buyback Price 2026: IT sector giant Wipro has recently announced a big share buyback of Rs 15,000 crore for its investors. The company has fixed the price of Rs 250 per share for this buyback. If we compare it with the price of April 17 (Rs 204), then it is at a premium of about 20 percent. In such a situation, the question arising in the mind of every common investor is whether participating in this buyback is really a profitable deal? Let us understand its complete mathematics.
Simple maths of Rs 40 per share
At first glance this buyback looks very attractive. The company is ready to buy back your shares for Rs 250. On April 16, the price of one share of Wipro in the market was Rs 210. According to this, there appears to be a direct profit of Rs 40 per share.
If an investor has 50 shares of Wipro If the company buys all of them, it will make a profit of Rs 2,000. Similarly, there is a direct profit of Rs 4,000 on 100 shares and Rs 20,000 on 500 shares. But in the world of stock market, things are not so simple. The real picture is slightly different from this.
Will all your shares be sold?
This is where the role of ‘Acceptance Ratio’ becomes important. According to Piyush Jhunjhunwala, founder of Stockify, the real benefit of buyback depends on how many shares the company accepts. Companies never buy the entire shares offered by investors.
The history of buybacks shows that for retail investors this ratio generally remains between 15 to 25 percent. This simply means that if you tender 100 shares, the company will buy only 20 of them (if we assume an average of 20 percent). In such a situation, your total profit on those 20 shares at Rs 40 would be only Rs 800, not Rs 4,000. Based on this average, the profit of those holding 50 shares will be reduced to Rs 400 and that of those holding 500 shares will be Rs 4,000.
What will come into hand after cutting?
This profit figure does not stop here, taxes are still to be accounted for. Short Term Capital Gains (STCG) tax is levied on this income from stock market, which is currently 20 percent.
Suppose, after applying the acceptance ratio, your total profit becomes Rs 800. On this, Rs 160 will be deducted as tax at the rate of 20 percent. That means you will get a net profit of only Rs 640. On the same lines, if someone’s profit is making Rs 4,000, then after paying tax of Rs 800, the actual amount in his pocket will be only Rs 3,200.
Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsh advises its readers and viewers to consult their financial advisors before taking any money-related decisions.
