Your eligibility for the buyback depends on the record date announced by the IT companies, for Infosys it has been declared as November 1, 2017 and for Wipro it was September 14, 2017. This implies that only those investors who held the shares of the respective companies on these dates can tender their share.
Infosys Buyback: For the retail investor category who hold share of a value of less than Rs. 2 lakh, Infosys company has reserved some Rs. 1950 crore out of the offer size of Rs. 13000 crore.
A total of 11.3 crore equity shares which nearly total to 4.92% of the equity capital shall be re-purchased by the company during the buyback period that remains open until December 13.
With the buyback price of Rs. 1150 for a share and a higher reserved portion, investors will be able to reap a good premium of over 18% as against its last trading price of Rs. 972.45 if their shares are accepted in the buyback process.
Brokerage firms view less participation by small investors in the tender buyback process and thereby foresee a better and higher acceptance ratio.
Wipro Buyback: The repurchase of 34.375 fully paid up equity shares at a price of Rs. 320 per share shall be made.
Since the announcement of the buyback, the stock of the company hasn't made significant gains, on July 21, 2017, the stock was trading at Rs. 287.15 on the BSE and today its LTP is Rs. 293. And the buyback at a price of Rs. 320 will provide good 9% premium to investors in light of the current trading price. Also there are higher chances of acceptance of the tender by small shareholders.
Further as during the announcement of the buyback, brokerage firm Way2Wealth gave a thumbs to the offer in light of the muted guidance, slow growth and the protectionist measures the sector is confronting.
So, in all investors, will be better off tendering their shares in the buyback of both the companies in which together they aim to distribute a surplus cash of Rs. 24000 cr to its shareholders.