Analysis of Wipro Ltd. Buyback. This presentation tries to decode the expected buyback process. Author Pooja Jain is Research Analyst with Adroit Research. Disclaimer: The research employee presenting this do not hold any long or sell position in the company mentioned herein at the time of release of this presentation.

1. Buyback:
Wipro Ltd.
Date: 23rd Apr’19
Symbol: WIPRO

2. Introduction
Wipro Ltd. has announced Rs. 10,500 crore buyback of shares for its investors
on 16 Apr’ 19.
Reason  To return surplus cash to shareholders
The members of promoter and promoter group have indicated their intention to
participate in the buyback. According to Wipro CFO, the announcement to buyback
equity shares is part of company's philosophy to deliver efficient returns to
shareholders.
The move is in line with cash-rich Indian IT companies returning cash in their books to
shareholders through buybacks and dividends.

3. Buyback Details
Announcement date 16-Apr-2019
Total Buyback 32,30,76,923 shares
Amount of Buyback 10,500 crores
% of Total paid up equity share capital 5.35%
Buyback price 325
Post buyback price* 281
(+) Premium / Discount (-)** 15.65%
Current Market Price# 288
*Post buyback price is the close price as on announcement date .
**Premium/Discount calculated as per post buyback price.
#Current market price is taken as the closing price on 22nd Apr’19.

4. Distribution of Eq. shareholding
No. of shares Shareholding
Number %
1-5000 35705960 0.79
5001-10000 7943841 0.18
10001-20000 10053160 0.22
20001-30000 6835088 0.15
30001-40000 5634614 0.12
40001-50000 4529721 0.10
50001-100000 16170373 0.36
100001 & above 4436911734 98.08
Grand Total 4523784491 100
Source: Annual report of company as on March 31, 2018

5. Expected Buyback Process
Total no. of equity shares (as on Mar’19) 589,67,00,635
Equity shares buyback as announced 32,30,76,923
Buyback as % of total equity shares 5.48%
Buyback price Rs. 325
Reserved for retail investors (as per SEBI) 15%
No. of shares reserved for retail (15% * 323076923) 48461538
Maximum no. of shares to qualify as small shareholder
(2,00,000/325) 615
Maximum No. of shares qualifying for buyback (Qualifying range) 47607946*
*Important: Company issued bonus shares in the ratio of 1:3 in March’19; after which no.
of shares falling in the qualifying range increases to 47607946 i.e. (35705960 *4/3)

6. Acceptance Ratio
Assumption Calculation Acceptance Ratio
100% (48461538/47607946*100) 101.79%
80% (48461538/38086357*100) 127.24%
60% (48461538/28564768*100) 169.65%
The theoretical acceptance ratio works out more than 100% in all the scenarios.
However this could change depending on new investors buying shares between 31-Mar-
18 and the record date i.e. addition/deletion of shareholders post 31-Mar-18 holding
615 shares, worth less than Rs 2 lakhs.

7. Disclaimer
Adroit Financial Services Private Limited (hereinafter referred to as “Adroit”) is a registered Member of National Stock Exchange of India
Limited, Bombay Stock Exchange Limited and Metropolitan Stock Exchange Limited. It is also registered as a Depository Participant with CDSL
and NSDL. Adroit Financial Services Private Limited is a registered entity with SEBI for Research Analyst in terms of SEBI (Research Analyst)
Regulations, 2014 vide Registration Number INH100003084. Adroit or its associates has not been debarred/ suspended by SEBI or any other
regulatory authority for accessing /dealing in securities Market. Adroit or its associates/analyst has not received any compensation / managed
or comanaged public offering of securities of the company covered by Analyst during the past twelve months.
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment decision.
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investment.
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