Wipro buyback sees 77.40% retail acceptance, fetches double-digit returns in 18 days

The investors will receive a payout for the buyback on July 5 along with the shares that were not accepted.

The record date for the buyback was on June 16 and the programme concluded on June 30. Wipro's plans to initiate a buyback of approximately 26.97 crore shares at a price of Rs 445 per unit, gave investors a chance to seize double-digit returns of 16.7 percent from the closing price of Rs 381.30 on the record date.

The returns that investors managed to earn from the buyback were much more than what they made within the past year. For context, the stock has given negative returns of over 7 percent in the past year, while the buyback gave investors double-digit returns within just 18 days.

This buyback programme also resulted in the elimination of 4.91 percent of the company's shares.

Shares of Wipro have been a major laggard within the entire information technology pack and its subdued quarterly performance along with a disappointing growth guidance worsened the situation.

Brokerage firm Motilal Oswal Financial Services remains neutral on Wipro, assigning a price target of Rs 360 for the stock, which represents an over 9 percent downside potential from Monday's closing price. The firm awaits further evidence of Wipro's refreshed strategy execution and a successful turnaround from its growth struggles over the last decade before turning more constructive on the stock.

At 9.42 am, shares of Wipro were trading at Rs 396.15 on the National Stock Exchange, up 1.2 percent from the previous close.