Everything You Need to Know About Wipro’s Latest 1:1 Bonus Issue 

 Mon Dec 2, 2024

Wipro Limited, one of India’s leading IT giants, has recently made headlines with its announcement of a 1:1 bonus issue, creating a buzz among investors. With a record date set for December 3, 2024, Wipro’s shares, which have already surged by over 30% in the last six months, are expected to see increased activity. Let’s dive into the details of this announcement and understand its implications.

What is a Bonus Issue?

A bonus issue is a corporate action where a company rewards its shareholders by issuing additional shares free of cost. In Wipro’s case, the 1:1 bonus issue means that for every share an investor holds, they will receive one additional share. However, it’s important to note that while the number of shares increases, the total value of the investment remains unchanged as the stock price is adjusted proportionally.

Key Details of Wipro's 1:1 Bonus Issue

Record Date and Ex-Date:

• Wipro has set December 3, 2024, as the record date for determining shareholder eligibility for the bonus issue.
• Since the record date and ex-date typically coincide, December 2, 2024, is the last day for investors to purchase Wipro shares to be eligible for the bonus.

Board’s Approval:

• The bonus issue was recommended by Wipro’s Board of Directors and approved through a postal ballot.
• As per Wipro’s filing, the bonus shares will be issued in the proportion of 1:1, with a face value of ₹2 per share.

Historical Perspective:

• According to data from Trendlyne, Wipro has previously issued six bonus shares since June 25, 2024.

How Does a Bonus Issue Impact Investors?

While the number of shares held by an investor doubles, the market price per share is adjusted accordingly to maintain the total investment value. For example, if Wipro’s shares are priced at ₹400 before the bonus issue, the price will likely adjust to ₹200 after the bonus issue. This move is aimed at improving liquidity and making the stock more accessible to retail investors.

Performance of Wipro Shares

Wipro’s shares have demonstrated impressive performance, delivering 40% returns over the past year. This growth, coupled with the bonus issue, has positioned Wipro as an attractive option for both existing and potential investors.

Why is Wipro’s Bonus Issue Significant?

• Enhanced Liquidity: With a higher number of shares in circulation, trading activity is expected to increase, improving liquidity.
• Investor Confidence: Bonus issues often signal a company’s strong financial health and instill confidence among shareholders.
• Attracting New Investors: The adjusted lower share price post-bonus can attract more retail investors to the stock.

Conclusion

Wipro’s 1:1 bonus issue is a strategic move that not only rewards its loyal shareholders but also enhances its market presence. With robust returns and consistent corporate actions, Wipro continues to demonstrate its commitment to creating shareholder value. Investors looking to participate in this bonus issue must ensure they purchase the shares before the December 2 ex-date.

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