IT bellwether Wipro has fixed June 5 as the record date for its largest buyback programme in three years. So, if you don’t want to miss any details of the buyback, here’s all you need to know:

#1 What is the buyback size?

    The IT major, in its exchange filing, said that the board of directors has approved a buyback tender offer aggregating to Rs 15,000 crore. The company will repurchase 60 crore equity shares at a premium price of Rs 250 each, with a face value of Rs 2 apiece.

    This represents 5.72% of its total paid-up equity capital. The record date for the same has been fixed for Friday, June 5.

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    #2 Who all are eligible?

    As an investor, if you want to get the buyback benefit, you must hold Wipro’s shares on or before Thursday, June 4. Since India follows the T+1 settlement cycle, if you purchase the company’s shares on the record date, they will be credited to your demat account on Monday, June 8, so you won’t be eligible for the buyback.

    #3 How will the buyback happen?

    Wipro will conduct the buyback through the tender offer route, so shareholders can voluntarily offer their shares at the premium price of Rs 250 per share. Since the buyback will be on a proportionate basis, if the offer is oversubscribed, Wipro will purchase shares from all participating shareholders in the same ratio.

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    What if you are an American shareholder?

    The IT firm’s shares are also traded on the New York Stock Exchange (WIT). However, if you are an American shareholder looking to participate in the buyback, you will have to convert your American Depositary Shares (ADSs) into Indian shares.

    Each ADS represents one equity share. To participate, holders must become direct shareholders of the company prior to the record date. For this, they will have to submit their ADSs to JP Morgan Chase Bank by Tuesday, June 2 (12:00 noon New York City time).

    American shareholders will also need to open a special DR-type demat account with a broker in India to receive these Indian shares.

    Wipro: Share Price

    The share price of Wipro will be in focus this week. The stock opened at Rs 205.50 on Monday. Over the past one month, its stock has delivered a return of nearly 2%, while over the past six months, it has fallen by more than 18%. So far this year, it has declined by over 23%.