Wipro Share Price Falls Nearly 8% as Stock Turns Ex-Date for ₹15,000 Crore Buyback

Wipro share price declined sharply on June 5, falling as much as 7.9% to ₹188.15 on the NSE, after the stock turned ex-date for its ₹15,000 crore share buyback programme.

The drop came a day after the last date for investors to purchase shares and become eligible for the buyback.

June 4 Was the Last Day to Qualify

Investors needed to own Wipro shares before the record date to participate in the buyback. June 4 was the final trading day for investors to buy shares and qualify for the offer.

As the stock started trading ex-date on June 5, new buyers were no longer eligible for the buyback benefit, leading to a decline in the share price.

Wipro's Largest-Ever Buyback

On May 22, Wipro announced the record date for its biggest share buyback to date.

The company plans to repurchase shares worth ₹15,000 crore at a buyback price of ₹250 per share, subject to shareholder approval.

According to Chief Financial Officer Aparna Iyer, the buyback is expected to cover around 5.7% of Wipro's paid-up equity capital and is likely to be completed during the first quarter of FY27.

Shareholder Return Focus

The company said returning cash to shareholders remains a key priority.

During FY26, Wipro distributed approximately $1.3 billion through dividends. Over the 3-year period ending FY26, the company maintained a payout ratio of 88%, which is higher than its stated capital allocation policy.

Promoters Likely to Participate

Wipro informed stock exchanges that members of its promoter and promoter group have expressed their intention to participate in the buyback programme.

The company has also formed a committee to oversee and manage the buyback process.

Why Do Stocks Usually Fall on the Ex-Date?

A stock often declines on the ex-date of a buyback due to a technical adjustment rather than any negative development in the business.

Before the record date, many investors buy shares to benefit from the buyback price, which is usually higher than the prevailing market price. Once the eligibility period ends, that opportunity is no longer available to new investors.

As a result:

• Demand from buyback-focused investors declines.
• Arbitrage traders often exit their positions.
• The buyback premium gets adjusted in the share price.

This typically creates short-term selling pressure on the stock.

What It Means for Investors

The fall in Wipro's share price does not necessarily reflect concerns about the company's fundamentals. Instead, it is largely a result of the stock turning ex-date for the buyback and the market adjusting for the loss of the buyback-related opportunity.

Investors who held shares before the record date remain eligible to participate in the buyback process, subject to the final terms and approvals.

Wipro Share Price Movement

As of 2:42 PM on June 5, Wipro share price (WIPRO) was trading at ₹197.54 on the NSE, down 3.32% or ₹6.78 for the day. The stock opened at ₹191.52, touched an intraday high of ₹197.71, and fell to a low of ₹188.15. Wipro currently has a market capitalisation of ₹2.07 lakh crore and trades at a price-to-earnings (P/E) ratio of 15.72.

Conclusion

Wipro's nearly 8% decline on June 5 was primarily driven by technical factors linked to its ₹15,000 crore buyback programme. With the stock now trading ex-date, the buyback benefit has been priced out, leading to reduced demand and short-term selling pressure. 

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