Wipro has announced a share buyback at ₹250 per share, offering investors a premium over recent market prices. The company plans to repurchase up to 60 crore shares, representing about 5.72% of its equity capital. Promoters, including the Azim Premji group holding 72.62%, will also participate in the tender offer.
The buyback price reflects a 16.3% premium over the 60‑day average and a 28.5% premium over the 10‑day average. For shareholders, the key factor is taxation. From 1 April 2026, buyback proceeds are treated as capital gains rather than deemed dividends, making the process more transparent and efficient.
For retail investors, long‑term gains above ₹1.25 lakh attract 12.5% tax, while short‑term gains are taxed at 20%. Promoters face additional levies: domestic companies pay 2% on short‑term and 9.5% on long‑term gains, while others pay 10% and 17.5% respectively, plus a 12% surcharge.
Illustrations show that tendering shares in the buyback yields better post‑tax inflows than selling in the open market. For example, a retail investor earning ₹1.5 lakh gains pays only ₹3,125 in tax, netting ₹2.46 lakh compared to ₹2.20 lakh if sold later. Even promoters, despite higher levies, benefit from the premium price.
The revised rules also allow capital losses to offset other gains and be carried forward for eight years. Overall, tendering shares in Wipro’s buyback is financially superior, aligning taxation with actual profits and rewarding investors fairly.