Why Wipro’s bonus issue is making headlines
Wipro Limited, one of India’s leading IT services companies, has announced its 1:1 bonus issue, with December 3, 2024, set as the record date. This means shareholders will receive 1 bonus share for every share they own. With Wipro stock gaining over 30% in the last six months, this announcement has generated significant excitement among investors.
The last day to buy Wipro stock and be eligible for the bonus issue is December 2, 2024. From December 3 onwards, the stock will trade ex-bonus, with its price adjusted to reflect the issuance of additional shares.
Also Read: Reliance Share Price in focus on record date for 1:1 bonus issue
Key details about the bonus issue
Here’s a quick summary of what the bonus issue entails:
| Details | Information |
| Bonus Ratio | 1:1 (1 bonus share for every share held) |
| Record Date | December 3, 2024 |
| Ex-Bonus Date | December 3, 2024 |
| Credit Date for Bonus Shares | By December 15, 2024 |
| Current Market Price (CMP) | ₹577.95 (as of December 2, 2024) |
This bonus issue reflects Wipro’s shareholder-centric approach and commitment to delivering value to long-term investors.
What happens on the record date and ex-bonus trading?
The record date is crucial in determining who qualifies for the bonus shares. If you own Wipro shares in your demat account by December 2, you will be eligible for the bonus shares.
On December 3, Wipro stock will trade ex-bonus, meaning its price will adjust to reflect the additional shares issued. For example, if the stock was trading at ₹580 before the bonus issue, it will likely trade around ₹290 post-bonus. This adjustment keeps the company’s market capitalisation unchanged while increasing the number of shares.
Wipro’s history of rewarding shareholders
Wipro is no stranger to bonus issues, having a long-standing tradition of rewarding its investors. Since 1971, the company has issued bonus shares multiple times. Here’s a snapshot of its history:
| Year | Bonus Ratio |
| 1971-1996 | 6 bonus issues |
| 1997 | 2:1 |
| 2004-2005 | 2 bonus issues |
| 2010 | 2:3 |
| 2017 | 1:1 |
| 2019 | 3:1 |
This consistent approach to rewarding shareholders has helped create significant long-term value for Wipro investors.
Wipro’s recent performance and share price target
Wipro stock has delivered impressive returns, gaining over 30% in the last six months and 40% in the past year. Analysts are optimistic about its future prospects.
- Short-term Target Prices: ₹615 to ₹635
- Support Level: ₹565
- Current RSI: 63.9 (indicating strong buying momentum)
Experts suggest that Wipro’s robust fundamentals and technical indicators make it an attractive buy for investors looking for growth opportunities.
Why this bonus issue matters
The 1:1 bonus issue is a testament to Wipro’s shareholder-first philosophy. It makes the stock more affordable for new investors and enhances liquidity, potentially driving greater market participation.
For existing shareholders, the bonus issue reflects Wipro’s commitment to sharing its success and creating long-term value.
Pros and Cons of Investing in Wipro’s Bonus Issue
| Pros | Cons |
| Increases the number of shares owned | Stock price adjusts proportionally |
| Enhances stock liquidity | No immediate monetary gain for investors |
| Reflects company’s strong fundamentals | Can dilute earnings per share (EPS) |
Conclusion: What should investors do?
Wipro’s 1:1 bonus issue is yet another reason why it remains a favourite among IT investors. With a history of shareholder rewards, strong fundamentals, and a promising growth outlook, Wipro stock continues to offer value for both new and existing investors.
If you’ve been holding onto Wipro shares, congratulations—you’re in for a reward. For those considering an entry, this bonus issue makes it an even more attractive opportunity.
Are you ready to leverage this shareholder reward for your portfolio? Let us know your thoughts!
