Wipro has announced a buyback of Rs 11,000 crore, which works out to about 7.1 per cent of the technology major’s equity capital. The buyback price is Rs 320, or a little over 11 per cent above the Friday’s close of Rs 286. Market players say the mega buyback offers retail shareholders an attractive arbitrage opportunity.
“Around 15 per cent of the buyback will have to be reserved for individual shareholders holding shares worth less than Rs 2 lakh in the company. The acceptance ratio for retail investors will be more than 50 per cent. Investors can still buy shares from the open market and tender them in the buyback and pocket decent gains,” said a broker.
Most valuable company ever
Another five per cent appreciation in the share price of Reliance Industries (RIL) will see it attain highest-ever market capitalisation by an Indian company. The company’s market value is at Rs 5.16 lakh crore, currently the most for domestically listed companies.
However, the highest-ever market capitalisation was recorded by Tata Consultancy Services (TCS) at Rs 5.43 lakh crore on October 1, 2014. Analysts believe the RIL stock can gain further by about 5-10 per cent from the current levels on the back of 1:1 bonus announcement, another aggressive move in the telecom space and strong prospects in the core refining and petrochemicals businesses.
Another five per cent appreciation in the share price of Reliance Industries (RIL) will see it attain highest-ever market capitalisation by an Indian company. The company’s market value is at Rs 5.16 lakh crore, currently the most for domestically listed companies.
However, the highest-ever market capitalisation was recorded by Tata Consultancy Services (TCS) at Rs 5.43 lakh crore on October 1, 2014. Analysts believe the RIL stock can gain further by about 5-10 per cent from the current levels on the back of 1:1 bonus announcement, another aggressive move in the telecom space and strong prospects in the core refining and petrochemicals businesses.
Samie Modak
Retail investors up exposure to Rcom
Retail investors have increased exposure to beleaguered Reliance Communications (Rcom) in the June quarter, despite concerns surrounding debt repayment and rising competition in the telecom sector.
According to the telecom firm’s latest shareholding data, individual investors’ holding has increased to 15 per cent, from 12 per cent in the previous quarter. On the other hand, foreign investors and mutual funds were seen paring their holding to the stock.
Market players said the retail investors typically get attracted to low absolute value of a stock. During the June quarter, shares of Rcom had plunged to an all-time low of Rs 17.80.
Pavan Burugula
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