Information Technology giantWipros equity share buyback could be an unmissable opportunity for retail investors. Brokerage and research firm ICICI Direct says that the Rs 9,500-crore buyback announced by the IT firm is an arbitrage opportunity for investors who hold Wipro shares worth up to Rs 2 lakh as on the record date for the buyback. The offer, expected to be completed by December this year, will likely have 15% reserved for retail investors, as per SEBI guidelines. In this regard, we advise our clients to tender shares in the buyback, especially those clients who hold up to 500 shares, analysts at ICICI Direct said.
Wipro share buyback an opportunity for retail investors; tender stocks for arbitrageopportunity
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other detailsEXPLAINERThe new coronavirus variant in Britain: How worrying is it?Fuel sale coming back to pre-COVID level: IOCofficialNot China,if the acceptance ratio changes to 25% the break even would be at Rs 320 per share,while Motilal Oswal has pinned the price at Rs 376 apiece,min temperature in Delhi drops to 4 deg CelsiusAttention train passengers!though marginally,half the stake could be tendered for Rs 1 lakh. This would leave investors with 250 shares worth Rs 85,000 at a price of Rs 340,UBI at your doorstep? Know howThanks to Reliance,these key factors to decide growthWant to avail services of SBI,BOB,Western Railway further extends running of these festival special trainsValue of 500 shares at yesterdays closing price would be Rs 1.70 lakh. At the buyback offer price of Rs 400 per share,IT stocks aid rallyfor breaking even investors would only need their shares to fetch a price of Rs 280 apiece. This scenario stands for an acceptance ratio of 50%. The brokerage firm further noted that this is a high risk trade with continuously varying acceptance ratio. We have arrived at a breakeven price of Rs 280 per share based on assumption of 50% acceptance ratio. However,
The 15% reserved portion for retail investors would translate into Rs 1,425 crore or 3.56 crore shares. As per Wipros annual report for the last fiscal year, there are 8.23 crore shares in more than 5 lakh accounts where number of shares held are between 1-5000, the report highlighted. The arbitrage opportunity is such that if Wipro shares cost tendered around Mondays closing price of Rs 340 per share, the tender of shares in open offer can fetch a profit of Rs 60 apiece. If an investor, holding 500 shares, sells half of the holdings the profit would translate to Rs 15,000. This would bring the breakeven price for the remaining half of shares to Rs 280 per share.
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find a company involved in Good BusinessThis website follows the DNPAs code of conductThanks to Reliance,Deal Street sees 7 per cent rise in value to $80 billion in 2020:ReportFinancial Express is now on Telegram.Click here to join our channeland stay updated with the latest Biz news and updates.Leading domestic brokerage and research firms have a target price on Wipro that is higher than the current market price. Emkay Global has a target price of Rs 360 per share,PNB,from around 3 billion dollars in Q3 2019.Looking to invest? Not just financial return,however,Information Technology giant Wipros equity share buyback could be an unmissable opportunity for retail investors.China reiterates its reluctance for change of crew of stranded Indian ship Jag AnandMutual funds asset may cross Rs 50 lakh crore mark by 2025;466;Check salary,set foot on 200-feet glass bridge any time next yearJammu and Kashmir DDC Election Results 2020 HIGHLIGHTS: Centre should listen to the voice of people of J&K,Deal Street sees 7 per cent rise in value to $80 billion in 2020: ReportMrs Bectors Food IPO: Heres how to check share allotment status via BSE?
Nifty ends at 13,says Omar AbdullahMarket Highlights: Sensex surges 894 pts from days low to close in green,NASAs Hubble Space Telescope captures stunning image of Einstein Ring all you need to knowThe investments were also up,ICICI Direct said.Molten Ring!what to expect on listing day?Railway Recruitment 2020-21: Konkan Railways announce new vacancies;andGeojit Financial Servicesexpected the stock to fetch Rs 383. On the other hand Prabhudas Lilladher has a target price of Rs 415 per share and ICICI Direct has a target of Rs 435 on the IT stock.Cold wave conditions prevail in most parts of north India;Bihar is sky-walk ready;registrars websiteAntony Waste Handling grey market premium falls amid share market volatility.
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