Wipro Falls 4% on Buyback Record Date —Why Stocks Often Drop After Record Dates

Wipro shares fell 4.1% to ₹195.9 Nifty's top loser on Friday. June 5 was the record date for Wipro's ₹15,000 crore buyback at ₹250 per share a 22.5% premium to market price. Once the record date passed the buying incentive disappeared and so did the stock's support. Before record date Investors rushed to buy shares to qualify for the ₹250 buyback price → buying pressure kept stock elevated After record date ualification window closed → short term traders who bought only to tender now sell → stock corrects sharply This pattern repeats with every buyback and dividend record date it is completely predictable once you understand the mechanics. Eligible shareholders can tender shares to Wipro at ₹250 getting an instant 22.5% return over current market price of ₹196. Even with partial acceptance this is attractive for existing shareholders. Wipro's own promoters have confirmed they will participate. Track the tendering window opening date and final acceptance ratio. A high acceptance ratio means more shares get bought at ₹250 maximising returns for participating shareholders.

Wipro's 4% post-record date fall taught me that buyback-driven price rallies reverse sharply once the record date passes, and that understanding tender offer mechanics buyback price, acceptance ratio and record date is essential before deciding whether to participate in buybacks of IT stocks like Wipro, TCS and Infosys.