Synopsis: Wipro’s board will review a proposed Rs. 16,000 crore share repurchase on April 16. Backed by Rs. 41,000 crore cash reserves and cleared approvals, the move marks its first buyback in three years.
The shares of the company are one of the leading Al-powered technology services and consulting company focused on building innovative solutions that address clients’ most complex digital transformation needs are in the spotlight after it rose by 3% in today’s session following the company considering a buyback after 3 years.
With a market capitalisation of Rs. 2,13,229 cr, the shares of Wipro Ltd were trading at Rs. 203.30 per share, increasing 3% in today’s market session, making a high of Rs. 208.95, up from its previous close of Rs. 202.90 per share.
Board Meeting and Buyback Proposal
Wipro has announced that its board of directors will meet on April 16, 2026, to consider a proposal for the buyback of equity shares. This move marks the company’s first buyback initiative in nearly three years.
The meeting is also scheduled to coincide with the announcement of the company’s fourth-quarter (Q4) financial results. Following the announcement, Wipro shares saw a positive reaction in the market, rising as much as 3% during Friday’s trading session.
Estimated Buyback Size and Rationale
Brokerage firm Investec estimates that the potential buyback could be valued at approximately Rs. 16,000 crore. This projection is based on Wipro’s substantial cash reserves; the company currently holds nearly Rs. 41,000 crore in net cash, a significant increase from the Rs. 28,000 crore it held during its previous buyback.
Analysts suggest that if Wipro deploys a similar percentage of shareholders’ funds (roughly 20.4%) as it did in the past, the Rs. 16,000 crore figure is highly likely.
Historical Context of Share Buybacks
Wipro has a consistent history of returning wealth to its shareholders through this mechanism. Its most recent buyback occurred in June 2023, totaling Rs. 12,000 crore at a price of Rs. 445 per share.
The company’s previous major buybacks were announced in April 2016 for Rs. 2,500 crore, followed by a Rs. 11,000 crore buyback in July 2017. It later carried out a Rs. 10,500 crore buyback in April 2019 and another Rs. 9,500 crore buyback in October 2020.
Management Outlook and Statutory Clearances
In recent earnings commentaries, Wipro management reiterated that buybacks remain a primary tool for capital distribution. The company also noted that several statutory hurdles, including pending subsidiary mergers and approvals from the National Company Law Tribunal (NCLT), have been resolved, clearing the path for this upcoming corporate action. This streamlined regulatory position provides the board with more flexibility to execute the large-scale buyback predicted by market experts.
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