Atlast some recovery in Wipro shares
📌 Wipro announced the Q4 results. I don't want to speak about the numbers like others. But the net profit is as same as the last quarters and the management announced that future growth is muted and they are expecting 2 to 3 % negative growth.
Then why Wipro shares went up above 2% ?
Well "buyback"
📌 Wipro announced the buyback of shares for around Rs 12000 crores at the price of Rs 445.
📌 Compared to yesterday's price, buyback price is around 18% premium over current price. This is the reason for the share price improvement.
📌 Now, here I am going to share my own experience on wipro.
I bought wipro at Rs 620
1st aggregated at Rs 550
2nd aggregated at Rs 490
3rd aggregated at Rs 410
4th aggregated at Rs 395
After that I got frustrated and stopped aggregating. And waited for any good news or some recovery in shares but "No".
📌 Atlast some recovery in Wipro shares now due to this buyback announcement. I am happy if it goes well.
📌 One thing we need to consider here is, the buyback is tender offer not the open offer, which is good why because Infosys too announced the buyback last year but that is open offer which is not really beneficial for the share holders.
📌 Buyback has Tax benefit , as company itself will pay the tax, so we don't need to pay the tax.
Can we participate in this buyback?
📌 Well I am going to participate in this buyback, why because management itself expecting muted growth for Q1, so that we can get another buying opportunity after the buyback also. This is my opinion.
what is tender offer and open offer?
📌 Open offer - company will buy it's own shares on the market at market price prevailing at that time. i.e we can't say at what price exactly the company will buy back from us like Infosys did at market price.
📌 Tender offer - company will buy it's own shares at the tender price, so that share holders can participate on buyback at the tender price like wipro now announced its buyback price is Rs 445 (Tender price).
#sharemarket #buyback #wipro # #growth #openoffer #tenderoffer.
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