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News Topical, Digital Desk : Indian IT giant Wipro has announced its largest share buyback plan to date. The company's board approved a ₹15,000 crore buyback on April 16, 2026, under which 600 million shares will be repurchased. This represents just over 5% of the company's total equity. The company will buy these shares at ₹250 per share, a price approximately 19% higher than the current market price of approximately ₹210. Therefore, this offer is attractive to investors.
The company's results were also strong
The buyback announcement coincided with the company's March 2026 quarter and annual results. Wipro's net profit increased by 12.3% to ₹3,502 crore during this period. Total revenue increased by 2.9% to ₹24,236 crore, slightly below market expectations. The company stated that this is its largest buyback to date and aims to complete it in the first quarter of 2026–27. However, this will depend on shareholder approval.
How much profit can there be? According to experts, profit depends on how many of your shares are purchased in the buyback. Let's understand this with an example: If the company buys all your shares, the calculation would be something like this: 50 shares = ₹2,000 profit 100 shares = ₹4,000 profit 500 shares = ₹20,000 profit
The calculation is simple. The buyback price is ₹250, while the current market price is around ₹210. The difference between the two is ₹40 per share. Therefore, even if all the shares are bought back, the profit is:
50 shares × ₹40 = ₹2,000
100 shares × ₹40 = ₹4,000
500 shares × ₹40 = ₹20,000
Why is the profit actually lower?
According to Piyush Jhunjhunwala, founder and chief executive of Stockify, retail investors typically accept only 15% to 25% of shares. If we assume an average acceptance of 20%, then only 20 shares per 100 shares will be accepted, and the profit will be only ₹800. This significantly reduces the actual profit.
Impact of Tax and Market Risk:
If a short-term capital gains tax of approximately 20% is imposed on this profit, approximately ₹160 could be deducted from the ₹800 profit. This would leave the investor with approximately ₹640. Furthermore, shares not accepted in the buyback remain in the investor's demat account and are subject to market risk. This means their price can fluctuate.
According to experts, when the average of the sold and unsold shares is calculated, the blended selling price falls to between ₹215 and ₹220 per share. This means that the declared ₹250 profit is reduced. While Wipro's buyback offer looks attractive on paper, the low acceptance rate, taxes, and market risks could limit profits for small investors. Experts believe that investors should make decisions based on the overall calculation and understanding of the risks, not just the profit.
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