Record date for Wipro buyback set for 16 June; should investors tender shares?

IT major Wipro settled on 16 June as the record date for its Rs 12,000 crore buyback of 260 million of equity shares. On the record date, the company will determine the entitlement and the names of equity shareholders who are eligible to participate in the buyback. This the fifth buyback announced by the IT player over the past seven years. The floor price for the buyback is set at Rs 445 apiece – 0.99% premium to its Friday’s closing price of Rs 404.95. Wipro shares were trading at Rs 404 on Monday.

Should you tender your shares in the buyback?

Analysts are unanimous in their advice to investors to tender their shares. Wipro’s current underperformance offers short-term investors a chance to offload their shares and book profits, said A R Ramachandran, co-founder & trainer, Tips2trade.