On October 17, 2024, Wipro announced a 21% increase in net profit for the September quarter and a bonus share issue in proportion of 1:1, marking the company's first bonus share issuance since 2019. This is the 14th time Wipro has issued bonus shares, solidifying its position as the most frequent issuer of bonus shares among Nifty and Non-Nifty constituents. Shareholders can expect to receive their bonus shares on December 15, 2024.
Wipro Announces Bonus Share Issue, Marking a Significant Milestone
Background
Wipro Limited, a leading global information technology, consulting, and business process services company, has a long history of rewarding its shareholders with bonus shares. The company's first bonus share issue was made in 1988, and since then, it has issued bonus shares on 13 different occasions, establishing itself as the most frequent issuer of bonus shares among Nifty and Non-Nifty constituents.
Recent Announcement
On October 17, 2024, Wipro announced its 14th bonus share issue in a ratio of 1:1. This move came on the heels of a strong financial performance in the September quarter, with a 21% increase in net profit. The bonus share issuance is a testament to Wipro's commitment to shareholder value creation and its confidence in the company's future growth prospects.
Details of the Bonus Issue
Eligible shareholders will receive bonus shares in the same proportion as their existing shareholding. For example, if a shareholder holds 100 Wipro shares as of October 31, 2024, they will receive an additional 100 bonus shares.
Significance of the Bonus Issue
Bonus share issuances are a way for companies to reward shareholders without incurring any additional cash outflow. By issuing bonus shares, Wipro is effectively increasing the number of shares outstanding without diluting the ownership of existing shareholders. This can lead to an increase in the company's market capitalization and enhance its overall liquidity.
FAQs
1. When will I receive my bonus shares?
Bonus shares will be credited to eligible shareholders' demat accounts on December 15, 2024.
2. What is the tax implication of bonus shares?
Bonus shares are tax-free in the hands of the shareholder. However, any subsequent sale of bonus shares will be subject to capital gains tax.
3. How will the bonus issue affect Wipro's share price?
The bonus issue is likely to have a neutral impact on Wipro's share price over the long term. In the short term, the share price may fluctuate due to profit booking by some investors.
4. Is Wipro likely to issue bonus shares again in the future?
The company's decision to issue bonus shares in the future will depend on a number of factors, including its financial performance, market conditions, and shareholder feedback.
5. What is the history of Wipro's bonus share issuances?
Wipro has issued bonus shares on 13 previous occasions, with the most recent being in 2019. The company has a track record of rewarding shareholders with bonus shares during periods of strong financial performance.
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