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.
Tesla, a leading electric vehicle (EV) company, has finally announced its foray into the Indian market with its first showroom opening in Mumbai this month. The company faced several delays due to import taxes and regulatory hurdles, but is now set to launch its first Experience Centre at the Bandra Kurla Complex. Tesla plans to offer six models in India with varying prices, starting from $40,000 and going up to $46,000. The company also plans to expand to Delhi and Bengaluru in the coming months, amidst new government rules aimed at boosting the production of electric cars in the country.
The highly anticipated Amazon Prime Day Sale is now live, offering some of the best deals on smartphones, electronics, and more. Popular brands like Samsung, OnePlus and Apple are offering attractive discounts on select models. Don't miss out on the opportunity to grab the Samsung Galaxy S24 Ultra, Apple iPhone 16e, OnePlus 13, and iPhone 15 at discounted prices.
New research has shown the use of artificial intelligence can create a highly productive and respectful performance review conversation between managers and employees. In contrast to the traditional approach, Samvāda 2.0 encourages managers to use communicative GenAI tools, like ChatGPT or Copilot, to get prepared for a critical PRM session. This new and improved method ensures a mutual understanding, collaboration, and trust between the manager and employee, leading to more effective performance reviews.
The much-anticipated Amazon Prime Day Sale has officially begun, offering early deals until July 14. As an exclusive event for Prime members, this sale boasts discounts on popular electronics, including smartphones, smart TVs, air conditioners, and laptops from top brands like OnePlus, Samsung, iQOO, and more. With savings reaching up to 80%, it's a must-visit for tech enthusiasts and online shoppers alike.
In a major move for the Ambani family's succession plan, Anant Ambani has been promoted to Executive Director at Reliance Industries Ltd with a salary between ₹10 crore and ₹20 crore per year, plus a profit-linked commission and executive perks. Anant, who has been with the Reliance Group since 2015, will be in charge of the energy business and capital projects, including the company's foray into new energy sources.
Amazon Business has released a statement declaring their exciting deals for Prime Day 2025, which will take place from 12th to 14th July. This year's celebration will be the longest one yet- lasting for 72 hours! Customers can expect jaw-dropping discounts on a variety of products, so mark your calendars and get ready for some major shopping.
Zivame's latest campaign encourages women to break out of their comfort zones and embrace their inner desires with confidence, by providing them with intimate wear that is tailored to their body type and personal style. The campaign features women from different backgrounds and ages, showcasing how the right intimate wear can boost their body confidence and allow them to pursue their dreams without hesitation. With the tagline "Dekho Maine Kya Kiya," the campaign celebrates the freedom and joy that comes with embracing one's desires and showcasing them to the world.
Petroleum and Natural Gas Minister Hardeep Puri has silenced critics who questioned India's continued crude oil imports from Russia during their ongoing war with Ukraine. Puri explained that halting oil trade with Russia would have led to a 10% reduction in global oil supply, causing chaos and driving prices to over USD 120-130 per barrel. He also added that India, under the leadership of PM Modi, has been a positive contributor to global energy price stability while navigating the trilemma of energy availability, affordability, and sustainability.
Contact Energy, a New Zealand utility company, has successfully acquired Manawa Energy in a deal valued at over $200 million. This acquisition will result in Infratil, a major shareholder of Manawa, now owning a 9.5% stake in Contact Energy. The completion of the deal also brings changes to Manawa's board of directors, with four new directors from Contact joining and Manawa's previous chair, Deion Campbell, now sitting on Contact's board. The acquisition was first announced in September 2024 and has received necessary approvals before being finalized in June 2025.
Indian equity markets started off on a weak note on July 11 as Tata Consultancy Services (TCS) reported disappointing Q1 results. This resulted in a sharp decline in TCS shares, dragging down the broader IT sector. As a result, the BSE Sensex fell by 331 points and the Nifty50 also slipped by 68 points. In the broader market, the Nifty MidCap and SmallCap indices also witnessed losses. However, the Nifty Pharma and PSU Bank indices offered some support with gains. Meanwhile, global markets were mixed following US President Donald Trump's announcement of tariffs on Canadian goods and his plans for further tariffs. Despite this, US markets closed at record highs.