Wipro Limited, a prominent player in the Indian IT sector, is set to issue bonus shares for the 14th time in its history. The record date for this significant corporate action is December 3, 2024, allowing shareholders to receive one additional share for every share held. This bonus issue comes after a five-year hiatus and reflects Wipro’s commitment to rewarding its investors.
Wipro’s Bonus Share Announcement
Details of the Bonus Issue
Wipro has announced a 1:1 bonus share issue, meaning shareholders will receive one bonus equity share of ₹2 each for every fully paid-up equity share they hold as of the record date. This announcement aligns with the company’s practice of enhancing shareholder value through bonus shares.
- Bonus Ratio: 1:1
- Record Date: December 3, 2024
- Eligibility: Shareholders holding Wipro shares by the end of trading on December 2, 2024
Historical Context
Over the past 24 years, Wipro has rewarded its shareholders with several bonus issues. The most recent was in 2019, where shareholders received a bonus in the ratio of 1:3. Here’s a brief overview of Wipro’s bonus history:
- 1971: 1:3
- 1981: 1:1
- 1985: 1:1
- 1987: 1:1
- 1989: 1:1
- 1992: 1:1
- 1995: 1:1
- 1997: 2:1
- 2004: 2:1
- 2005: 1:1
- 2010: 2:3
- 2017: 1:1
- 2019: 1:3
Stock Performance on Past Ex-Dates
Analyzing Historical Movements
To understand how Wipro’s stock has reacted during previous bonus issues, we can look at its performance around ex-dates:
- 2010 Bonus Issue
- Ex-Date: June 15, 2010
- Price on Ex-Date: ₹136.5
- Price on Record Date: ₹139.95
- Price a Day After Record Date: ₹138.35
- 2017 Bonus Issue
- Ex-Date: June 13, 2017
- Price on Ex-Date: ₹194.51
- Price on Record Date: ₹192.04
- Price a Day After Record Date: ₹195.6
- 2019 Bonus Issue
- Ex-Date: March 6, 2019
- Price on Ex-Date: ₹277.4
- Price on Record Date: ₹268.8
- Price a Day After Record Date: ₹256.5
These historical movements indicate that while Wipro shares may experience fluctuations around the record date, there is often a slight decline following the issuance of bonus shares.
Current Market Sentiment
Recent Stock Performance
As of December 2, Wipro shares have shown positive momentum, closing over 1% higher at ₹579 ahead of the record date announcement. The stock has delivered impressive returns this year, up approximately 21% year-to-date and around 42% over the last year.
Investor Expectations
With the upcoming bonus issue, investor sentiment remains optimistic. Many analysts believe that this corporate action will further enhance shareholder value and potentially lead to increased demand for Wipro shares.
Conclusion
Wipro’s decision to issue bonus shares reflects its ongoing commitment to rewarding shareholders and enhancing investor confidence. As the record date approaches, market participants will be watching closely to see how the stock performs in response to this significant corporate action.
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.
