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Tata Motors, TCS, Paytm, and other hot stocks on January 13

<ul><li>Infosys announced that it will consider buyback of equity shares during its board meeting set to take place tomorrow, on April 14.</li><li>Analysts estimate that shares may be bought up at ₹1,600 to ₹1,650 a piece.</li><li>According to them, the buyback is not because the management feels that Infosys’ shares are undervalued but because it is as per the company’s payout policy.</li><li>Infosys has thus far given out around 50% in dividend as what is left over will be spent on this buyback.</li></ul>Indian information technology (IT) giant, Infosys, may announce a buyback of equity shares after its board meeting scheduled for April 14. And, analysts estimate that the shares will be picked up between ₹1,600 to ₹1,650 a piece.<br /><br />That's a 14% premium on the closing price of Infosys on April 13.<br /><br />            <div type="javascript" title="Custom" contenttype="Image"><cdata><![CDATA[<div class="flourish-embed flourish-chart" data-src="visualisation/5841634"></div>]]></cdata></div><br />“If you see, Infosys usually spends 85% of its free cash flow five year’s average. This year they've given out around 50% in dividend. The rest of the amount, which comes up to around ₹11,500 to ₹12,500 crore, they will spend on this buyback,” explained Sanjiv Hota from Sharekhan.<br /><br />Apurv Prasad from HDFC Securities told Business Insider India that the Bengaluru-based tech services major may buy fewer shares this time around.<br /><br /><cmsannotation type="cmsannotation" annotationid="Why is Infosys buying back shares?" comment="subhead" text="Why is Infosys buying back shares?"><span data-til="noop">Why is Infosys buying back shares?</span></cmsannotation><br />A buyback is when a company purchases free floating shares in the market. A process in which the promoters participate too.<br /><br />It is normally done at a price higher than what is prevailing in the market. Analysts estimate that Infosys will offer between 10% to 15% premium. <br /><br />Companies normally offer a buyback of shares to stem a fall in share prices, as many did after the pandemic rocked markets in March last year. <br /><br />However, since the government announced that dividends will be taxable as per the effective rates rates for corporate shareholders — more commonly known as promoters — in July 2020, some companies have opted for the buyback route to save tax.<br /><br />“Dividends are not the most efficient method of payouts for a certain set of investors because of the much higher slab rates,” explained Prasad. Dividends are subject to ordinary income tax whereas buybacks are taxed at a capital gains tax rate, which is lower.<br /><br /><table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"></colgroup></colgroup></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Highest income tax slab<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">30%<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Short term capital gains tax<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">15%<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Long term capital gains tax<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10%<br /><br /></td></tr></tbody></table><br />It also helps the company get rid of any excess cash on the books. It’s common practice for leading companies to have a regular buyback strategy in place. “What happens is that if you don’t give the buyback, there’s a lot more cash which is not yielding high returns,” Prasad explained.<br /><br />Infosys is not alone in the balancing act of paying out dividends and offering buybacks. Most IT companies do a little bit of both depending on their shareholder profile. “It’s a tender route where the promoters also end up participating,” said Prasad. <br /><br />TCS, for instance, returned $4.17 billion of cash to shareholders through buybacks and dividends this year.<br /><br /><strong>SEE ALSO:<br /><a href="https://www.businessinsider.in/stock-market/news/adani-ports-share-price-big-fall-in-two-days-amid-rising-covid-19-cases-and-myanmar-military-controversy/articleshow/82046212.cms">Adani Ports’ shares down 14% in two days as market fears a slump in global trade and Myanmar issue denting its image</a><br /><br /><a href="https://www.businessinsider.in/business/news/gautam-adani-and-mukesh-ambani-cumulatively-lost-nearly-7-billion-as-the-markets-plunged/articleshow/82043202.cms">Gautam Adani and Mukesh Ambani cumulatively lost nearly $7 billion as the markets plunged</a><br /><br /><a href="https://www.businessinsider.in/business/corporates/news/tcs-has-broken-many-records-in-the-last-the-three-months-from-revenue-to-new-deals-to-new-hiring/articleshow/82034522.cms">TCS has broken many records in the last three months — but that isn't good enough for the market</a><br /><br /></strong><a href="https://www.businessinsider.in/finance/news/rbis-g-sap-1-0-is-certainly-a-much-needed-demand-lever-to-support-the-government-borrowing-programme/articleshow/82042416.cms"><strong>RBI’s G-SAP 1.0 is certainly a much needed demand lever to support the government borrowing programme</strong></a><br />

Analysts estimate that Infosys may offer buyback of shares at ₹1,600 to ₹1,650 apiece

<ul><li>Infosys has announced that it will be buying back shares for a maximum of ₹1,750 apiece, which is a 25.2% premium over the prevailing share price in the market. </li><li>The IT giant also announced a dividend of ₹15 per equity share.</li><li>Companies buy back shares in the market, at a price higher than what is prevailing in the market, usually to signal confidence in the future prospects or to say that the shares are undervalued.</li></ul>Shareholders of Infosys, one of India’s top five information technology (IT) companies, have a reason to rejoice today, even as markets remain closed.<br /><br />The tech behemoth announced a buyback of equity shares worth ₹9,200 crore and will be doling out a dividend of ₹15 per equity share. However, this time around, it's not a tender buyback but an open market buyback. This means ₹1,750 is the ceiling price, but that the shares could be bought back for a lesser price. The quantum of shares that are bought back will be determined accordingly.<br /><br />That’s over $2 billion in buyback and dividend for its shareholders this quarter.<br /><br />Analysts had predicted that the shares would go for anywhere between a 10% to 15% premium and it seems Infosys landed on the higher end of the estimate. . The buyback price of ₹1,750 per share is a 25.2% premium to the closing price on April 13.<br /><br />                                                <div type="Article" hostid="261" msid="82049122" title="Analysts estimate that Infosys may offer buyback of shares at ₹1,600 to ₹1,650 apiece" mstype="2" mssubtype="0"></div><br />The plan is to buyback 52 million shares or 1.23% of the total paid up capital.<br /><br /><cmsannotation type="cmsannotation" annotationid="The company is rewarding shareholders after a good year" comment="subhead" text="The company is rewarding shareholders after a good year"><span data-til="noop">The company is rewarding shareholders after a good year</span></cmsannotation><br />The company saw its revenue grow by 2% in January to March as compared to the previous quarter. And revenue from digital, now, officially accounts for more than half of the money that Infosys is bringing in. <br /><br />After a blockbuster second quarter, where the company brought in $7.13 billion in new deals, it was only able to $2.1 billion in the last three months. <br /><br />What’s the good news? The management expects the next 12 months to be even better. The annual growth guidance is for a 12-14% growth in revenue in dollar terms — without accounting for exchange rate fluctuations. That’s more than twice the 5% growth clocked in the year ending March 2021. <br /><br />    <div type="Article" hostid="261" msid="82066467" title="Infosys had a great year but CEO Salil Parekh expects the next one to be more than twice as good" mstype="2" mssubtype="0"></div><br />If the uptrend for the IT services industry continues, shareholders can expect an even better buyback price next year.<br /><h2 style="line-height:1.56;background-color:#ffffff;margin-top:0pt;margin-bottom:0pt;padding:26pt 0pt 8pt 0pt;"><cmsannotation type="cmsannotation" annotationid="Here’s why Infosys is buying back shares" comment="subhead" text="Here’s why Infosys is buying back shares"><span data-til="noop">Here’s why Infosys is buying back shares</span></cmsannotation></h2>Companies buy back shares in the market, at a price higher than what is prevailing in the market, usually to signal confidence in the future prospects or to say that the shares are undervalued. <br /><br />However, since the Indian government announced that dividends will be taxable as per the effective rates for corporate shareholders — more commonly known as promoters — in July 2020, some companies have opted for the buyback route to save tax.<br /><br />Dividends are subject to ordinary income tax whereas share buybacks are taxed at a capital gains tax rate, which is lower.<br /><br /><br /><table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"></colgroup></colgroup></colgroup></colgroup></colgroup></colgroup></colgroup></colgroup></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Highest income tax slab<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">30%<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Short term capital gains tax<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">15%<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Long term capital gains tax<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10%<br /><br /></td></tr></tbody></table><br /><em><strong>Correction</strong>: An earlier version of the story said that the buyback price was higher than expected. Changes have been made to clarify that the buyback price of Rs. 1750 is the maximum price. Since the company plans to buy its own shares from the open market, the price may even be lower at times.<br /></em><br /><strong>SEE ALSO:<br /><a href="https://www.businessinsider.in/business/corporates/news/infosys-had-a-great-year-but-ceo-salil-parekh-expects-the-next-one-to-be-more-than-twice-as-good/articleshow/82066467.cms">Infosys had a great year but CEO Salil Parekh expects the next one to be more than twice as good</a><br /><br /><a href="https://www.businessinsider.in/tech/apps/news/whatsapps-new-privacy-policy-doesnt-give-you-choice-and-could-limit-your-options-in-the-future-too/articleshow/82063830.cms">WhatsApp's new privacy policy doesn't give you choice — and could limit your options in the future too</a><br /><br /><a href="https://www.businessinsider.in/science/space/news/indian-astronomers-spot-over-200-new-stars-in-the-pacman-nebula-and-51-of-them-are-yet-to-reach-adulthood/articleshow/82060301.cms">Indian astronomers spot over 200 new stars in the Pacman Nebula — and 51 of them are yet to reach adulthood</a></strong><br />

Infosys will buy back shares at ₹1,750 in the open market

Vodafone Idea, Dish TV and other top stocks to watch out for on September 7

<ul><li>The IT giant announced share buyback of ₹4,500 per share, which is at nearly 17% premium from previous close price.</li><li>Following this, shares of the company rose 1.4% and among top 5 gainers on the benchmark index Nifty 50.</li><li>Check out our <a href="https://www.businessinsider.in/bi-newsletter">weekly explainers</a> on the hottest topics and <a href="https://www.businessinsider.in/newsletters_signup.cms">sign up</a> if you like them.</li></ul>Shares of the Mumbai-based IT giant <keyword id="6357150" type="General" weightage="20" keywordseo="tcs" source="Orion">TCS</keyword> climbed 1.4% in the opening trade as investors cheered the company’s December quarter earnings as well as the plan to buy back shares.<br /><br />The software exporter that crossed $25 billion in annual revenue, with three months to spare in the financial year, has offered to buy back shares at a price up to ₹4,500 apiece, that’s 17% more than the closing price on Wednesday (Jan 12).<br />          <div type="image" title="tcs share 2" height="900" width="1200" msid="88868131" hostid="261"></div>That’s not the entire reason for the cheer. Revenue grew a strong 4.5% in constant currency terms (adjusted for foreign exchange fluctuations). This would compare to Infosys’ 7% and Wipro’s 3% in the same period i.e. October to December 2021. <br /><br />The fall in operating margin to 25%, due to rising cost of hiring and retaining talent, was disappointing but it is not a concern, analysts at Morgan Stanley reportedly said.<br /><br />“TCS delivered strong growth numbers and the overall pipeline remains robust. We believe demand for core transformation remains strong, and this coupled with exemplary execution is likely to drive strong earnings,” said analysts at Edelweiss Research.<br /><table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Brokerage firms<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Target price<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Morgan Stanley<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹4,400 <br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Citi<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹3,580 <br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Edelweiss Research<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹5,000 <br /><br /></td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table><br /><br /><strong>SEE ALSO: </strong><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/tech/enterprise/news/tcs-vs-infosys-vs-wipro-how-indias-three-it-giants-stack-up-against-each-other/slidelist/88860676.cms">TCS vs Infosys vs Wipro Q3 results – here’s how India’s three IT giants stack up against each other</a><br /><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/careers/news/tcs-completes-its-fresher-hiring-target-three-months-ahead-of-schedule-but-its-not-done-yet/articleshow/88858310.cms">TCS completes its fresher hiring target three months ahead of schedule but it’s not done yet</a><br /><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/tech/enterprise/news/tcs-will-buy-back-shares-worth-18000-crore-for-a-price-up-to-4500-apiece/articleshow/88859747.cms">TCS will buy back shares worth ₹18,000 crore for a price up to ₹4,500 apiece</a>

TCS shareholders cheer share buyback and strong growth

<br /><ul><li>The Union Budget announced a 20% tax on buyback shares last week and IT companies are already feeling the pressure. </li><li>The Budget also proposed increasing public shareholding limits in a company to 35%, which means promoters of companies will have to <a href="https://www.businessinsider.in/indian-promoters-may-sell-3-7-trillion-worth-shares-to-meet-new-free-float-norms/articleshow/70122641.cms">dilute their shareholding</a>.</li><li>The new changes will particularly impact Wipro and Infosys since payout yields, rather than earnings, was the primary determinant for investors.</li></ul>What was shaping up to be a year of buybacks might be for naught with <a href="https://www.businessinsider.in/budget">Union Budget 2019</a> announcing a 20% dividend distribution tax on buyback shares with immediate effect. <br /><br />
  
  
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<br />Dampening the markets further, Nirmala Sitharaman also announced a proposal to increase the minimum public shareholding limits in a company from the current 25% to 35%<br /><br />
  
  
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<br />Both, the buyback tax and increase in public shareholding, might lead to a 4-8% fall in the yield of IT stocks, according to Dart Research. Infosys and Wipro, in particular, will bear the impact since payout yields, rather than company earnings, was one of the primary determinants for investors.<br /><br /><div type="ExtQuote" text="The announcement of a 20% tax on buybacks goes further than just eliminating the tax arbitrage with dividend payout – it spells the end of the buyback option altogether for corporates." auname="India Infoline"></div>

<br />The combination of both those factors is one of the major reasons behind the <a href="https://economictimes.indiatimes.com/markets/stocks/news/budget-blues-sensex-tanks-793-pts-logs-biggest-single-day-fall-in-three-years/articleshow/70128208.cms">biggest</a> Sensex crash in three years — and IT companies are bearing the brunt.<br /><br /><strong>The buyback plan<br /></strong><br />IT giants, Infosys and Wipro, whose buyback offers were open at the time of the budget, saw their stocks drop with the announcement of a 20% tax on the buyback of shares.<br /><br />Infosys and other IT giants — like TCS, Infosys, HCL Tech, and Tech Mahindra — have been using buybacks to payout shareholders because paying out dividends attracts a tax of 20.56%. <br /><br />For the past three years, these companies have been using a mix of both dividend payouts and share buybacks to distribute cash to their shareholders.<br /><br />
  
  
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<br />Infosys announced a ₹8,260 buyback offer in January. Soon after, Wipro announced its buyback offer in April this year, which is the third of its kind in the past four years.<br /><br />Cumulatively in the past two years, Wipro has used buybacks to make 90% of its shareholder payouts. TCS, on the other hand, made 60% payouts using buybacks.<br /><br /><br /><br />

TCS, Wipro, Infosys and peers may have to review share buyback plan as the new budget may take a bite out of it

<ul><li><keyword id="6357150" type="General" weightage="20" keywordseo="tcs" source="Orion">TCS</keyword> has announced share buyback at ₹4,500 per share, which is nearly 17% more from previous close price.</li><li>It added 10 new clients in the December quarter that has revenue potential of $100 million for the software exporter.</li><li>The IT giant reported revenue on quarter growth of 4.5% in constant currency.</li></ul>Tata Consultancy Services (TCS) said that it would buy back shares worth ₹18,000 crore. It will offer a price of up to ₹4,500 a share. That’s a premium of nearly 17% to the closing price on Wednesday (January 12).<br /><div type="image" title="TCS share" height="900" width="1200" msid="88859723" hostid="261"></div>TCS revealed its share buyback plan along with reporting a 4.5% growth in revenue in constant currency terms. This is comparable to Infosys (7%) and Wipro (3%) in the same period. <br /><br />Since companies like Wipro, TCS, and Infosys export software, and earn in dollars, pounds or euros, they report growth in constant currency terms, which is adjusted for foreign exchange fluctuations. <br /><div type="image" title="TCS dollar" height="900" width="1200" msid="88859729" hostid="261"></div>TCS added 10 new clients whose annual revenue potential is $100 million or more in a year for the company. “Quote on deals”<br /><br />“Overall we don’t have a specific preference of small deal, medium deal or large deal. We participate across the board and stay continuously engaged across the full spectrum. Very large deals like $500 million or billion dollar deals, they by nature are few and far between. More importantly, they take a long time to mature and are unpredictable in terms of when they will close. There are a few in the pipeline but we can't tell as to when they will come through,” said Rajesh Gopinathan, chief executive officer and managing director at TCS. <br /><div type="image" title="TCS clients" height="900" width="1200" msid="88859738" hostid="261"></div>The largest Indian IT firm has reported 12% on year growth in net profit of ₹9,769 crore in the December quarter. The company has also announced a dividend of ₹7 per share to investors. <br /><br /><strong>SEE ALSO: </strong><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/careers/news/tcs-completes-its-fresher-hiring-target-three-months-ahead-of-schedule-but-its-not-done-yet/articleshow/88858310.cms">TCS completes its fresher hiring target three months ahead of schedule but it’s not done yet</a><br /><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/careers/news/the-attrition-at-infosys-is-worse-than-that-at-wipro-ceo-salil-parekh-has-increased-hiring-plan-by-10000/articleshow/88856648.cms">The attrition at Infosys is worse than that at Wipro, Salil Parekh has increased hiring plan by 10,000</a><br />

TCS will buy back shares worth ₹18,000 crore for a price up to ₹4,500 apiece

<ul><li>The <keyword id="10862" type="CITY" weightage="20" keywordseo="Wipro">Wipro</keyword> share buyback offer is now open at a buyback price of ₹400 per share.<br /></li><li>The total size of the buyback plan is ₹9,500 crore, out of which 15% is reserved for small investors with up to ₹2 lakh holding in the company.<br /></li><li>Wipro’s share price has rallied by over 66% since July, and the buyback offer could be a good way to cash out those gains.<br /></li></ul>IT services giant Wipro announced a share buyback offer at a premium of 10% when compared to the share price on the date of announcement. Wipro has offered ₹400 per equity share under its ₹9,500 crore buyback plan.<br /><br />The Wirpo share buyback offer is open till January 11, 2021. Equity shareholders who held shares in the company on or before December 11, 2020 are eligible to participate in the buyback.<br /><br />Wipro’s share price as on December 11 was ₹353. The shares hit a 52-week high at ₹390.40 with the buyback plan opening today.<br /><br /><div type="image" title="Wipro share price chart" msid="80006298" hostid="261" caption="&amp;lt;p&amp;gt;Wipro share price since July this year&amp;lt;/p&amp;gt;"></div><br /><br /><strong>Should you participate in the Wipro share buyback offer?<br /></strong><br />If you are an existing Wipro shareholder, you might be considering selling your shares in the buyback program. But before you proceed, here’s what analysts are saying.<br /><br />“It depends on the market price during the buyback period - if the share price is below the buyback price, it might be worth considering,” said Deepak Shenoy, founder of Capital Mind, a Bengaluru-based research house.<br /><br />Wipro shares were trading at ₹386 as of 12 pm on December 29, up by 0.92%. Since the buyback offer is open till January 11, 2021, the share price could still see a lot of movement.<br /><br />This makes it important to wait towards the last few days of the buyback scheme to see if the buyback price makes sense, Shenoy further explained.<br /><br /><strong>Wipro outshines peers under new CEO’s guidance<br /></strong><br /><table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.99375pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Company<br /><br /></td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.99375pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Current share price<br /><br /></td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.99375pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Performance<br /><br /></td></tr><tr><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.99375pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">TCS<br /><br /></td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.99375pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹2,935.95<br /><br /></td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.99375pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">40%<br /><br /></td></tr><tr><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Infosys<br /><br /></td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,241.5<br /><br /></td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">70%<br /><br /></td></tr><tr><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">HCL Tech<br /><br /></td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹934.3<br /><br /></td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">69%<br /><br /></td></tr><tr><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Wipro<br /><br /></td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹386<br /><br /></td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">76%<br /><br /></td></tr></tbody></table><br />Source: BSE<br /><br />Note: Share price as on 12:30 pm, December 29, 2020, compared with share price on July 1, 2020.<br /><br /><strong>‘Existing shareholders should participate in the buyback’<br /></strong><br />However, Urmil Shah, analyst at IDBI Capital, struck a different note. He said, “Existing shareholders should participate in the buyback and tender their shares. We believe the buyback price is at a premium compared to our existing fair price of ₹366,”.<br /><br />He further explained that a lot would also depend on the amount of participation in the buyback plan. According to the plan, 15% of the total buyback offer is reserved for retail investors with holdings of up to ₹2 lakh.<br /><br />If this segment sees over-participation, the buyback will be done proportionately, and not all shares tendered will be accepted.<br /><br />Wipro had undertaken buyback of equity shares worth ₹10,500 crore in 2019 as well.<br /><br /><strong>Wipro’s new CEO is driving the growth<br /></strong><br />Wipro appointed Thierry Delaporte as its new chief executive officer in July this year. <a href="https://www.businessinsider.in/business/corporates/news/wipro-ceo-delaportes-new-plan-could-allow-company-to-catch-up-to-to-tcs-infosys-hcl-tech-and-others/articleshow/79299467.cms">Analysts are betting</a> on the new CEO’s plans for the company.<br /><br />“Wipro is undertaking the drastic restructuring of its business, reducing the layers, and splitting the business by region. It expects this to result in a much more agile and nimble organisation, which will accelerate growth,” remarked Motilal Oswal’s report.<br /><br /><strong>SEE ALSO:<br /><br /><a href="https://www.businessinsider.in/business/corporates/news/wipro-buyback-offer-details-and-700-million-metro-ag-deal-drives-share-price/articleshow/79911875.cms">Wipro offers 10% more to buy back shares and signs a $700 million deal with Metro AG – everything that’s driving the IT services stock higher today</a><br /><br /><a href="https://www.businessinsider.in/business/corporates/news/wipro-buys-the-it-operations-of-a-german-food-services-firm-for-700-million/articleshow/79909949.cms">Wipro buys the IT operations of a German food services firm for $700 million</a><br /><br /></strong><a href="https://www.businessinsider.in/finance/news/what-is-rbis-sovereign-gold-scheme-and-how-and-who-can-apply-checkout-all-information/articleshow/79987008.cms"><strong>RBI’s Sovereign Gold Bonds scheme opens today — price, how to apply, and more</strong></a><br />

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