IT giant Wipro Ltd has announced a bonus issue of shares on October 17th, causing a 3% increase in stock value. The company is set to release its quarterly results on the same day, with analysts predicting a 2.3% decrease in revenue. Wipro has also revealed its estimated revenue for the quarter, expecting a decrease of 1% to 1% in constant currency terms. With this news, mid-tier companies are anticipated to continue outperforming in the medium term.
Wipro Announces Bonus Share Issue, Buoying Stock Value
Background:
Wipro Limited is a leading global information technology (IT) company headquartered in Bangalore, India. The company provides a broad range of IT services, including consulting, system integration, outsourcing, and software development.
Bonus Issue Announcement:
On October 17, 2022, Wipro announced a bonus share issue, which is a type of corporate action where existing shareholders receive additional shares without having to pay for them. The company will issue one bonus share for every one share held by shareholders as of the record date, November 7, 2022.
Market Response:
The announcement of the bonus share issue led to a 3% increase in Wipro's stock value on the day of the announcement. The bonus share will increase the number of shares outstanding, which dilutes the earnings per share. However, it is generally seen as a positive development by shareholders as it increases their ownership stake in the company.
Quarterly Results and Revenue Forecast:
Wipro is set to release its quarterly results on the same day as the bonus share issue announcement. Analysts are predicting a 2.3% decrease in revenue, primarily due to the ongoing global economic slowdown. However, the company has forecast a more modest revenue decline of 1% to 1% in constant currency terms.
Outlook for Mid-Tier IT Companies:
Wipro's bonus share issue and revenue forecast have implications for the broader IT industry. Mid-tier IT companies, such as Wipro, are expected to continue outperforming large-cap IT companies in the medium term. This is due to their lower cost structures, leaner operations, and higher agility in adapting to changing market conditions.
Top 5 FAQs:
1. What is a bonus share issue? A bonus share issue is a distribution of additional shares to existing shareholders without requiring them to pay for them.
2. Why do companies issue bonus shares? Companies issue bonus shares to reward shareholders, improve liquidity, and optimize their capital structure.
3. Does a bonus share issue affect the share price? In the short term, a bonus share issue can cause a slight dilution in the share price. However, over the long term, it can benefit shareholders by increasing their ownership stake in the company.
4. What is the record date for Wipro's bonus share issue? The record date for Wipro's bonus share issue is November 7, 2022.
5. When is Wipro expected to release its quarterly results? Wipro is expected to release its quarterly results on October 17, 2022, the same day as the bonus share issue announcement.
The National Company Law Tribunal has intervened in the ongoing dispute between Aakash Education Services Limited and Byju's, directing a status quo on the former's shareholding. This move came after the Resolution Professional of Byju's filed a plea in court. As one of India's leading ed-tech companies, Byju's has been aggressive in its acquisition of competitors such as Aakash Institute, and this development adds to the ongoing legal battles in the business world.
FOX News Network, LLC has announced exclusive offers for members of the military and first responders on their streaming platform, FOX Nation. The offers include discounted rates and additional benefits for those who serve in these roles. To learn more and take advantage of these offers, interested individuals can contact the designated help centers or visit the FAQ page on the FOX News website. With this initiative, FOX News continues to show their support for those who serve and protect their communities.
The Brihanmumbai Municipal Corporation (BMC) exceeded expectations by collecting Rs 6,172 crore in property tax in the financial year 2024-25. This marks a 30% increase compared to the previous year and is the highest ever collection for India's largest civic body. BMC officials attribute the success to consistent follow-ups, enhanced recovery measures, and citizen compliance. Despite facing financial strain, tax rates in Mumbai have remained unchanged since 2015, leading the BMC to explore other revenue sources.
Following a long wait, the Staff Selection Commission (SSC) has finally declared the final results of the Combined Graduate Level Examination (CGL) 2024,which was held on 12.03.2025. Out of 1267 candidates whose results were withheld, the SSC has released the scores for 219 candidates on its official website. The remaining results are still pending for further scrutiny, and candidates can check their scorecards by logging into the website using their registration number and password.
In a major move to revive the struggling telecom company Vodafone Idea (Vi), the Indian government has decided to convert an additional Rs 36,950 crore of the company's dues into equity, bringing the government's total stake in the company to nearly 49%. This follows a previous infusion of Rs 6,133 crore in equity in February 2023. With this takeover, the government becomes the single-largest shareholder in Vi and will continue to have operational control of the company. However, this decision has raised concerns about potential losses for taxpayers, as the government will have to acquire these shares at a premium of more than 47%.
The debut of Mubarak Coin on Binance, the world's largest crypto exchange, was met with unexpected results as the token crashed by 40% in just 24 hours. This sudden drop has sparked intense discussions among investors, with some seeing it as a normal correction and others fearing a larger shakeout. The token's listing on Binance was expected to boost its price, but instead, it triggered a sell-off by whales (large investors) taking profits, leading to panic selling. Some traders who hoped to ride the wave for huge profits in the futures market were left disappointed as insiders allegedly dumped large amounts of the crypto, further causing price declines. Technical indicators suggest that the selling pressure is likely to continue.
Fox News Network, LLC has announced new offers for both military members and first responders. These discounts will be available on their streaming service, Fox Nation, and can be accessed by contacting the online representatives or through the FAQ section on the network's website. This move comes amid the company's efforts to expand its audience and cater to different demographics.
In a major move to consolidate his influence, billionaire entrepreneur Elon Musk's AI venture xAI has acquired X, formerly known as Twitter, for a whopping $33 billion. This merger is expected to streamline the development of Musk's AI model, Grok, by combining xAI's advanced AI capabilities with X's massive reach. The all-stock transaction values xAI at $80 billion, solidifying Musk's diverse portfolio which already includes Tesla and SpaceX. Stay tuned for updates on how this acquisition will impact the future of AI and technology.
Audit firm S D Mehta & Co has revealed that there is no data available for any block deals in Shangar Decor Ltd, a miscellaneous industry company with registered headquarters in Ahmedabad, India. The main management team, including chairman Samirbhai Rasiklal Shah and company secretary Shubhangi Chaurasia, may face challenges as a result. The information has been sourced from reliable corporate and stock market data providers, but users are advised to seek professional advice before making any investment decisions.
With the price of gold constantly fluctuating, many investors are turning to Gold ETFs as a more convenient and cost-effective way to invest in the precious metal. In this article, we explore the top 5 Gold ETFs with the highest annualised returns in the past 10 years and analyze their performance since their debut in the market. Find out how a one-time investment of Rs 1,25,000 in each fund has fared over a 10-year period, with an expense ratio as low as 0.41 per cent.