Wipro buyback opens today: How much tax will you pay? Here's the calculation

Wipro’s Rs 15,000-crore share buyback opens for shareholders on Thursday June 11, giving investors a chance to tender shares at a hefty premium to the prevailing market price. However, investors planning to participate in the buyback may need to pay closer attention to the tax implications, as rules have changed from April 2026.

The buyback offer will remain open until June 17, 2026.

Wipro buyback size and price

The IT services major has approved the repurchase of up to 60 crore fully paid-up equity shares with a face value of Rs 2 each. The buyback represents up to 5.72 per cent of Wipro's total paid-up equity share capital.

The total buyback size is Rs 15,000 crore. This amounts to 24.99 per cent and 19.99 per cent of the aggregate of the company's paid-up equity capital and free reserves based on its latest audited standalone and consolidated financial statements, respectively, for FY26.

Wipro has fixed the buyback price at Rs 250 per share, payable in cash. The buyback price is 41 per cent higher than Wipro's market price of Rs 177 on the BSE as of June 11 morning trade.

Key dates investors should track

According to the schedule announced by the company, shareholders can tender their shares under the buyback offer until June 17.

The last date and time for receipt of completed tender forms and other specified documents by the registrar is 5 PM IST on June 17.

Entitlement ratio explained

Wipro has announced separate entitlement ratios for small shareholders and other eligible investors.

For small shareholders in the reserved category, the entitlement ratio is 11 equity shares for every 56 shares held on the record date.

For shareholders in the general category, the entitlement ratio is 10 equity shares for every 197 shares held on the record date.

Actual acceptance may vary depending on the number of shares tendered by investors and the overall participation in the buyback.

New tax rule changes the calculation

The biggest change for investors this year is the taxation of buyback gains.

Before April 1, 2026, listed companies paid the buyback tax. As a result, shareholders received the buyback proceeds without paying tax on the gains.

That framework has changed. Under the new rules, the tax liability now falls directly on investors.

This means the attractive buyback premium may not translate into the same post-tax returns that investors were accustomed to in previous buybacks.

How much tax will you pay?

The tax depends on how long you have held the shares.

If you have held Wipro shares for more than one year, the profit from the buyback will be taxed at 12.5 per cent.

If you have held the shares for less than one year, the profit will be taxed at 20 per cent.

This is important for investors buying shares mainly to participate in the buyback, as a part of the profit will go towards tax.

What does this mean for investors?

Let's take an example.

If 1,000 Wipro shares are accepted in the buyback at Rs 250 per share, the total amount received will be Rs 2.5 lakh.

If these shares were bought at around Rs 177 per share, the profit before tax would be about Rs 73,000.

If the shares were held for less than one year, a 20 per cent tax would apply on this profit. That works out to about Rs 14,600.

After paying tax, the profit would come down to around Rs 58,400.

In simple terms, the difference between the buy price and the buyback price looks attractive. But after tax, the actual profit will be lower. The final return will also depend on how many shares are accepted in the buyback.