Wipro shares drop over 8% after ₹15,000cr buyback goes ex
Business
Wipro's stock just took a hit, dropping over 8% in two days, including a sharp 5% fall on Monday to ₹187 on the BSE.
This slide happened right after the company went ex-record for its massive ₹15,000 crore share buyback, which got investors rushing to lock in profits.
Buyback at ₹250 prompts profit taking
The buyback lets Wipro purchase shares at ₹250 each, a solid premium, so many investors cashed out once they became eligible.
Adding to the pressure, Morgan Stanley kept its 'Underweight' rating and set a target price of ₹192, pointing out slow revenue growth and tough competition in IT.
Wage hikes could also squeeze Wipro's margins below their usual guidance.