Wipro Bonus Shares Record Date: Wipro Ltd., a prominent player in the technology services sector, made headlines on October 17, 2024, with the announcement of a significant 1:1 bonus share issue. This move means that shareholders will receive one additional share for every share they currently hold, which is expected to benefit nearly 22 lakh small shareholders. While the exact record date for this bonus issue will be communicated later, the announcement is already generating positive sentiment among investors.
Details of the Bonus Issue
This bonus share issuance marks Wipro’s first since 2019, reflecting a commitment to enhancing shareholder value. With this latest round, Wipro has issued bonus shares 14 times throughout its history, solidifying its reputation as one of the most generous companies in the Nifty and Non-Nifty indices regarding bonus shares.
Historical Context: Wipro’s bonus share history includes several notable instances:
- 1971: First bonus issue
- 1981, 1985, 1987, 1989: Subsequent issues
- 1992, 1995, 1997: Continued trend of generosity
- 2004, 2005, 2010: Reaffirming commitment to shareholders
- 2017, 2019: Most recent prior issues
Shareholder Demographics
As of the September quarter, Wipro had approximately 21.92 lakh small shareholders, defined as those holding authorized share capital of less than ₹2 lakh. This demographic represents a significant portion of the company’s investor base and will benefit directly from the bonus issue, fostering goodwill and a sense of belonging among retail investors.
Financial Performance
Wipro’s announcement came alongside its Q2 fiscal results, revealing a 21% year-on-year increase in net profit, reaching ₹3,209 crore, compared to ₹2,646 crore in the same quarter of the previous year. Furthermore, the company reported a sequential rise in net profit to ₹3,227 crore, surpassing analysts’ expectations.
| Wipro Financial Highlights (Q2 FY25) | |
|---|---|
| Net Profit | ₹3,209 crore (21% YoY increase) |
| Sequential Net Profit | ₹3,227 crore |
| Revenue | ₹22,302 crore |
| EBIT Margin | 16.5% |
| Market Performance (Share Price) | ₹528.65 (0.65% decrease on announcement day) |
Market Reaction and Future Prospects
Despite a slight decline of 0.65% in share price on the day of the announcement, Wipro’s stock has shown an overall gain of 11.6% in 2024, reflecting positive market sentiment for the company. Analysts are optimistic about Wipro’s strategic direction, particularly its focus on AI-driven initiatives, as noted by CEO Srini Pallia. He emphasized strong execution and expanding top accounts, contributing to a robust performance in various sectors, including Banking, Financial Services, and Insurance (BFSI), consumer technology, and communications.
Looking Ahead
Wipro’s board stated that the shares from the bonus issue would be credited or dispatched within two months from the date of approval, with a target date of December 15, 2024. This timely distribution will ensure that shareholders can swiftly benefit from their new shares.
Moreover, Wipro’s emphasis on innovation, particularly its investments in artificial intelligence, positions it well for future growth. As companies increasingly seek digital transformation, Wipro’s strategic focus could lead to significant long-term benefits for both the company and its shareholders.
Conclusion
The announcement of the 1:1 bonus share issue is a significant milestone for Wipro and its shareholders. By rewarding small shareholders, Wipro continues to foster a positive relationship with its investor base, reinforcing its commitment to shareholder value. With robust financial performance and a forward-looking strategy, Wipro is well-positioned for sustained growth in the competitive technology services landscape. As the market awaits the formal record date, shareholders can look forward to the benefits of this generous initiative.
