Wipro Announces 1:1 Bonus Share Issue for Shareholders

Wipro, the technology services provider, has announced a 1:1 bonus issue of shares on Thursday, October 17, 2024. This significant decision means shareholders will receive one additional free share for every share they currently hold as of the yet to be disclosed record date.

This announcement marks the first instance since 2019 that Wipro is issuing free shares to its shareholders. In the previous instance, shareholders received one free share for every three shares held. This upcoming bonus issue will be the 14th such issuance in the company’s history, with previous instances taking place in years such as 1971, 1981, 1985, 1987, 1989, 1992, 1995, 1997, 2004, 2005, 2010, 2017, and 2019.

The latest bonus issue is particularly good news for retail investors. Wipro’s latest financial disclosures reveal that, as of the September quarter, the company had 21.92 lakh small shareholders, each holding an authorized share capital of less than ₹2 lakh.

Despite the positive announcement, Wipro’s stock ended 0.65% lower on Thursday, closing at ₹528.65. Over the last month, the stock had seen a decline of 4%, though it has made an overall gain of 11.6% over the current year.

Alongside the bonus share announcement, Wipro reported its second quarter (Q2) results, showcasing a robust 21% increase in net profit, reaching ₹3,209 crore. The company also reported a revenue of ₹22,301 crore for the same period. These figures underline the company’s strong financial performance amid the positive shareholder rewards.