Wipro Ltd recently announced a bonus issue in the ratio of 1:1, increasing the number of outstanding equity shares but reducing the share price. This is their first bonus issue since 2019, with previous bonus shares being issued in various ratios. The company's paid-up equity share capital is expected to be over Rs 20,925 crores after the bonus issue. Analysts believe that the current combination of a strong portfolio and new CEO make for a favorable risk-reward profile for investors.
Wipro Ltd., one of India's largest information technology companies, is set to issue a bonus share in a 1:1 ratio. This means that every eligible shareholder will receive one additional equity share for every fully paid-up share they hold. With nearly 22.4 lakh shareholders, this will result in a doubling of their shareholding without any additional investment. However, to qualify for the bonus issue, investors must acquire Wipro shares before the record date of December 3. While the quantity of shares will increase, the total value of the investment will remain the same as the share price will adjust to reflect the increased number of outstanding shares. The Securities and Exchange Board of India has also reduced the time taken for credit of bonus shares and their trading to two working days.
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.
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.