Wipro Ltd, a prominent player in the IT services sector, revealed on Thursday its plans for a substantial share buyback program amounting to Rs 15,000 crore, offering shares at Rs 250 each, which is a 19% premium compared to the stock’s previous closing rate.
The board of directors has sanctioned the repurchase of up to 60 crore shares, which constitutes 5.7% of the company’s total paid-up share capital.
On Thursday, Wipro’s shares experienced a slight increase of 0.19%, reaching Rs 210.20 on the Bombay Stock Exchange (BSE).
For the March quarter of FY26, Wipro reported a consolidated net profit of Rs 3,501.8 crore, reflecting a decline of 1.89% from Rs 3,569.6 crore during the same period last year.
In September 2025, Infosys had announced a buyback plan valued at Rs 18,000 crore. Companies typically initiate share buybacks for various strategic reasons, primarily to utilize their cash reserves to repurchase shares from the market. A key objective is to enhance the stock price; by decreasing the number of shares available, the earnings per share (EPS) generally improve, which can make the stock more appealing and often lead to a price increase.
Additionally, share buybacks serve as a signal of confidence from management, suggesting they believe the stock is undervalued. By engaging in buybacks, they indicate that they view their own shares as a sound investment, which can help to reassure investors, as noted by market analysts.
Moreover, buybacks provide a flexible method for returning surplus cash to shareholders. Unlike dividends, they do not imply a long-term obligation and can be modified more easily, according to industry experts.
Wipro has projected that revenue from its IT services segment for the June quarter of FY27 will range between $2,597 million and $2,651 million. This represents a sequential forecast of a decline of 2.0% to no change in constant currency terms. Srini Pallia, the CEO and Managing Director, remarked that “advancements in AI are reshaping client priorities and creating new opportunities for us to partner more deeply to deliver value-driven outcomes.” He further emphasized that to enhance their position in an AI-first landscape, Wipro is transitioning to a services-as-a-software model through its AI native business and platforms unit.
