The much-awaited buyback worth Rs 15,000 crore of Wipro opened on Thursday. The IT major is set to buy back up to 60 shares from eligible shareholders at Rs 250 per share, which is around 40% higher than the current market price.

Wipro’s buyback will remain open from June 10 to June 17 during which the company will buy back up to 5.7% of its total paid-up share capital. The record date for the buyback was fixed on June 5, which means that only those shareholders who owned shares of the company on that day would be eligible to tender shares in the offer, and investors taking fresh positions today will not qualify.

Key things to know about Wipro’s buyback

Under Wipro’s buyback offer, eligible shareholders in the reserved category for small shareholders are entitled to tender 11 equity shares for every 56 equity shares held as on the record date (June 5). For shareholders falling under the general category, the buyback entitlement has been fixed at 10 equity shares for every 197 equity shares held on the record date.

Buyback of shares refers to a corporate action where a company repurchases its own shares from the existing shareholders. Usually, the company purchases the shares at a higher price than the current levels, encouraging investors to participate. Notably, Wipro has said that its promoters and promoter groups have indicated their intention to participate in the buyback. They can tender a maximum of 745 crore shares.

How can you participate in Wipro buyback?

Wipro shareholders can participate in the share buyback by placing a bid through a stock broker registered either with the BSE or the NSE via a separate window that would open up on the stock exchanges. The registrar will complete the verification of tendered shares by June 19, 2026. Thereafter, the final acceptance or rejection of shares tendered under the buyback will be communicated to the stock exchanges by June 23. The payment will be made to the eligible shareholders by June 24.

After the buyback, Wipro will return the unaccepted shares by June 24, as per the schedule shared by the IT giant in its exchange filing. “Eligible Shareholders must ensure that their demat account(s) is active and unblocked for receipt of unaccepted shares and that their bank account is linked with their demat account for credit of remittance on acceptance of equity shares under the buyback,” the company said.

How much profit can retail investors make from Wipro buyback?

Let’s take an investor who bought 1,008 shares of Wipro at Rs 198 apiece before the record date and is planning to tender shares in the buyback for example. The total value of her shares as on the record date stood at Rs 1,99,584, making her eligible for Wipro’s reserved category for small shareholders (less than Rs 2 lakh).

As per the entitlement ratio, she will be entitled to tender 198 shares out of her 1,008 stock holding (11 equity shares for every 56 equity shares held as on the record date). It is important to note that not all shares she tenders may be accepted in the buyback process.

However, for the shares accepted as part of the buyback, she will earn Rs 52 per share at the buyback price of Rs 250 per share, much higher than what she would have made if she sold the shares at the current market price of less than Rs 180.

Analysts on Wipro buyback

Sunny Agrawal, Head of Fundamental Research at SBI Securities, said that any retail investor holding shares within the small shareholder category (total value of shareholding below Rs 2 lakh as on the record date) should tender all her shares in the buyback.
“A retail investor holding up to 1,008 shares as on the record date will be eligible to tender around 212 shares (assuming an acceptance ratio of approximately 21% versus an entitlement ratio of 19.7%) at the buyback price of Rs 250, implying a gain of around Rs 70 per share over the current market price,” the analyst explained.Based on this calculation, the investor can earn a potential profit of around Rs 14,800, implying a 7.4% return on a total portfolio of Rs 2 lakh, Agrawal said. “While this is beneficial, the absolute return remains moderate rather than highly attractive,” he added. This is a good option for investors who acquired shares at Rs 198 or higher (as per the buyback document, on the record date, the closing price on NSE was Rs 198.37), according to the analyst.

Also Read | Should retail investors tender shares in Wipro’s buyback?

Harshal Dasani, Business Head at INVasset PMS, also said that existing eligible retail shareholders tendering shares in the buyback seem to be rational as the accepted portion can be sold back at a fixed premium.

If we assume Wipro’s market price at around Rs 181 apiece, the spread will roughly be Rs 69 per accepted share before tax and costs, Dasani explained, adding that on the entitlement alone, about 19 to 20 shares out of every 100 may get accepted, though the final acceptance can be higher depending on participation.

Narendra Solanki, Head of Fundamental Research of Investment Services at Anand Rathi Shares and Stock Brokers, calculated that retail or reserved category investors who are holding Wipro shares less than Rs 2 lakh as on the record date will likely have an acceptance ratio of 20%, and may earn a profit of approximately 7.7%.

What is the real risk?

The real risk is the unaccepted portion of shares, Dasani cautioned. If the stock weakens after the buyback, especially in a bearish IT and broader market setup, the residual holding can dilute the apparent arbitrage return, he explained.

“So this is a tactical buyback opportunity, not a reason to become structurally positive on Wipro or Nifty IT,” Dasani cautioned.

Also Read | 10 key things to know before tendering shares in Wipro’s Rs 15,000 crore buyback

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

Shares of Honasa Consumer, the parent company of Mamaearth, rallied 6% to their day’s high of Rs 438 on the BSE as investors cheered the company’s revenue target of Rs 5,500 by the financial year 2031.

The company’s revenue outlook implies a CAGR of about 18% between FY26 and FY31. Mamaearth is expected to remain the key growth driver, with revenue crossing Rs 2,000 crore by FY31, while The Derma Co is projected to contribute nearly Rs 1,500 crore during the same period.

Further, the company plans at least two more Rs 500 crore revenue-generating brands across the portfolio, it said in an investor presentation. It owns brands such as Aqualoga, BBlunt, Dr Sheth’s, and Reginald Men.

Honasa plans to expand EBITDA margins to 15% by unlocking a 500-basis-point improvement through a stronger presence in higher-margin channels and categories, alongside benefits from scale and operating efficiencies.

The company’s direct outlet network is targeted to grow from around 1.2 lakh outlets currently to 3 lakh outlets by FY31. A greater mix of general trade, modern trade, and quick commerce is also expected to support margin expansion.

Honasa aims to become the national market leader in at least two skincare categories, while securing a top-three market share position in at least two additional categories.
Following the development, Goldman Sachs raised the target price of Rs 400, which the company has already surpassed. The international brokerage has maintained a Neutral rating on the counter.
Reflecting faster profitability improvement, the brokerage has raised its FY27-FY29 earnings estimates by 1-4%. However, Goldman Sachs believes the stock’s risk-reward remains balanced at current valuations.

Honasa Q4 snapshot

The company reported a whopping 177% year-on-year (YoY) jump in consolidated net profit to Rs 69 crore for the fourth quarter of the financial year 2026, from Rs 25 crore in the year-ago period.
Honasa’s revenue from operations, meanwhile, jumped over 23% YoY to Rs 657 crore during Q4 of FY26, compared to the Rs 533 crore revenue reported in the corresponding quarter of FY25.

Honasa shares have risen 64% in the last six months and about 50% in 2026.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)