Wipro Limited, one of India’s leading IT companies, is set to issue bonus shares for the 14th time in its history. Scheduled for December 3, 2024, this new bonus issue comes in a 1:1 ratio, meaning shareholders will receive one additional share for every share they hold. This announcement follows a long tradition of rewarding shareholders, transforming an initial investment of 100 shares in 1971 into an impressive 682,667 shares today.
Wipro’s Bonus Share History: A Legacy of Generosity
Wipro has consistently rewarded its shareholders through bonus issues since its first in 1971. Over the years, the company has issued bonus shares 13 times, significantly increasing the number of shares held by long-term investors. Here’s a brief overview of Wipro’s bonus share history:
- 1971: First bonus issue at a ratio of 1:3
- 1981: Bonus issue at a ratio of 1:1
- 1985: Bonus issue at a ratio of 1:1
- 1987: Bonus issue at a ratio of 1:1
- 1989: Bonus issue at a ratio of 1:1
- 1992: Bonus issue at a ratio of 1:1
- 1995: Bonus issue at a ratio of 1:1
- 1997: Bonus issue at a ratio of 2:1
- 2004: Bonus issue at a ratio of 2:1
- 2005: Bonus issue at a ratio of 1:1
- 2010: Bonus issue at a ratio of 2:3
- 2017: Bonus issue at a ratio of 1:1
- 2019: Bonus issue at a ratio of 1:3
Transformative Impact on Shareholders
For instance, if an investor held 100 shares in 1971 and did not sell or buy any additional shares, their holding would have grown to an astonishing 682,667 shares today due to these bonus issues. The upcoming bonus share issuance will further increase this number significantly.
Current Performance and Market Reaction
Stock Performance
Ahead of the bonus share announcement, Wipro’s stock has shown positive momentum. As of November 29, 2024, Wipro shares closed at ₹579 apiece, reflecting a gain of approximately 20% year-to-date. This performance is slightly below the benchmark NIFTY IT index, which has risen over 21% during the same period.
Anticipation for New Shares
With the new bonus issue on the horizon, investors are eager to see how this will impact their holdings. The record date set for December 3 means that shareholders who own Wipro shares by the end of trading on December 2 will be eligible for the new shares.
Conclusion
Wipro’s decision to issue bonus shares for the 14th time underscores its commitment to enhancing shareholder value. The company’s historical trend of rewarding investors through bonus issues has created significant wealth over the decades. As Wipro prepares for this latest issuance, it continues to solidify its reputation as one of India’s most shareholder-friendly companies.
Disclaimer: This article is for informational purposes only and does not constitute financial advice or recommendations regarding stock purchases. Readers should conduct their own research or consult with financial advisors before making investment decisions related to any stocks mentioned herein. If you need any further adjustments or additions, feel free to let me know!
