Wipro’s Upcoming Bonus Share Issue
Wipro Limited, a premier IT company in India, has announced it will issue bonus shares on December 3, with a ratio of 1:1. This marks the 14th time Wipro has issued bonus shares, continuing a tradition that started in October 1971. Over the years, Wipro’s consistent bonus issues have transformed an initial holding of 100 shares in 1971 into 682,667 shares today.
Company Overview
Wipro is a global leader in IT transformation, consulting, and business process services. The company leverages advanced technologies such as cognitive computing, hyper-automation, robotics, cloud, and analytics to help clients navigate the digital landscape successfully.
Bonus Share History
Wipro has a robust history of issuing bonus shares. The first bonus issue in 1971 had a 1:3 ratio, meaning shareholders received one additional share for every three shares held. Subsequent bonus issues included multiple 1:1 ratios, a 2:1 ratio, and variations such as 2:3. For instance, in 2005, a 1:1 bonus issue doubled the number of shares held. If an investor held 100 shares in 1971 and retained them without any further trading, the number of shares would have grown to 682,667 by the most recent bonus issue.
Impact of the Upcoming Bonus Issue
With the latest 1:1 bonus issue, the total number of shares held by an investor since 1971 will increase significantly. For example, the 100 shares from 1971 will multiply to 1,365,334 shares after this new bonus.
Wipro’s Share Performance
Wipro shares have shown solid performance, delivering a 20% return on a year-to-date basis, slightly lower than the NIFTY IT index’s 21% return. However, on an annual basis, Wipro outperformed the benchmark with a 42% return compared to the index’s 32%. As of November 29, Wipro’s shares closed at ₹579 on the NSE, reflecting a 1.1% increase ahead of the bonus issue.
Conclusion
Wipro holds the record for the most bonus shares issued among Nifty constituents, with 13 previous bonus issues. The 14th bonus issue will further increase the share count for long-term investors who have held Wipro shares since 1971.
Disclaimer: This article is for educational purposes only and does not constitute financial advice. Investors should conduct their own research and consider their financial situation before making investment decisions.
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