Wipro Buyback Closing Date Changed To Friday, June 30; Here's Why

Wipro Buyback: IT major Wipro has extended the closing date for its Rs 12,000 crore buyback offer due to the shift in the stock market holiday to June 29, Thursday on the occasion of Bakra Eid.

As per the latest regulatory filing, Wipo said, “on account of change in the working day from June 29, 2023, to June 28, 2023, SEBI vide its email dated June 27, 2023, has allowed extension in the tendering period by 1 (one) working day. Accordingly, the Buyback Closing Date will be Friday June 30, 2023, instead of Thursday, June 29, 2023.”

According to the guidance, a buyback is required to be kept open for 5 working days. And hence, Wipro’s buyback which opened on June 22, was set to close on June 29 since June 28 was seen as a public holiday.

However, the government shifted the date of the Bakrid festival to June 29 from June 28 and accordingly, exchanges have made the changes including Wipro for its buyback offer.

Wipro said, “In addition to placing the bid through the Stock Broker, Eligible Shareholder’s holding Equity Shares in physical form should submit the duly filled in and signed Tender Form, TRS, and requisite documents to the Registrar to the Buyback before 5pm on Friday, June 30, 2023.”

Wipro Buyback Details

The buyback offers investors a chance to make decent returns despite the poor performance by the company’s shares in the stock market. Eligible shareholders of Wipro can choose to tender their shares to the company at a price of Rs 445 per share which is at a premium of 15.4% against June 21 closing price.

For small retail investors, as defined by those with holdings less than Rs 2 lakh, 15% of the buyback size has been kept reserved. The buyback entitlement ratio has been fixed at 62 shares for every 265 shares held on the record date. This translates into an entitlement ratio of 23.4%.

On the other hand, the ratio is much lower at around 4.3% for other investors as the entitlement for them has been fixed at 26 shares for every 603 shares held.

After the closing of the buyback, the last date for verification by the Registrar to Wipro’s buyback is set on July 4, while the date for acceptance/non-acceptance of tendered equity shares to the stock exchanges by the Registrar is set on July 6, 2023.

While July 7 will be the last date for — settlement of bids on the stock exchanges; return of unaccepted equity shares to eligible shareholders/ stock brokers; payment of consideration to eligible shareholders who participated in the buyback offer.

Lastly, the due date for the extinguishment of equity shares under the buyback is July 18.

JM Financial is the manager of the buyback, and KFIN Technologies is the registrar.

How to Tender Shares

Shareholders interested in tendering shares in the buyback process can do it through their stock brokers.

Shareholders will need to instruct their respective stock broker of the details of the equity shares intended to be tendered under the buyback.

“In accordance with applicable law, a lien shall be marked by the stock broker in the demat account of the eligible shareholder for the shares tendered in tender offer. Details of such lien marked shares in the demat account of the eligible shareholder shall be provided by the depositories to the clearing corporation,” Wipro said in a letter of offer.