Wipro Bonus Shares Record Date: What Shareholders Should Know Before Dec 2, 2024
Wipro Bonus Shares Record Date: Wipro Limited, one of India’s leading IT companies, is set to make waves in the stock market with the announcement of its 14th bonus share issuance. This move, which signals confidence in the company's future growth, will provide one bonus share for every share held by eligible shareholders. The record date for eligibility is December 3, 2024, and to qualify, investors must own Wipro shares by the end of trading on December 2, 2024.
This 1:1 bonus share issue comes after a break since 2019, when Wipro issued bonus shares at a 1:3 ratio. The new bonus issue demonstrates the company's commitment to enhancing shareholder value, benefiting its approximately 22 lakh small shareholders. For Wipro’s loyal investors, this announcement represents a significant opportunity to increase their holdings without any additional cost.
What Are Bonus Shares?
Bonus shares are additional shares given to existing shareholders without any cost. The issuance is typically based on the number of shares already owned by the investor. Wipro’s decision to offer 1:1 bonus shares means that for every share held, shareholders will receive an additional one. This move is often viewed as a sign of a company’s strong financial health and its confidence in its ability to generate future growth.
By offering bonus shares, Wipro distributes accumulated profits while maintaining its cash reserves. This is also aimed at increasing liquidity in the market and making the stock more attractive to potential investors.
Wipro's Historical Bonus Shares
Wipro has a long tradition of rewarding its investors with bonus issues, a practice that dates back to 1971. Over the years, the company has issued bonus shares multiple times, with varying ratios. Here’s a snapshot of Wipro’s historical bonus share issuance:
| Year | Bonus Ratio |
|---|---|
| 1971 | NA |
| 1981 | 1:1 |
| 1985 | 1:1 |
| 1987 | 1:1 |
| 1989 | 1:1 |
| 1992 | 1:1 |
| 1997 | 2:1 |
| 2004 | 2:1 |
| 2005 | 1:1 |
| 2010 | 2:3 |
| 2017 | 1:1 |
| 2019 | 1:3 |
The 14th bonus issue in 2024 marks a continuation of this legacy, reinforcing Wipro’s commitment to its shareholders. For example, an investor holding 100 shares since 1971 would now possess over 682,667 shares, showcasing the compounding effect of these corporate actions over the years.
Wipro’s Stock Performance and Market Sentiment
As Wipro approaches the record date for its 14th bonus issue, the company’s stock performance has been positive. Recently, Wipro shares closed at ₹579, reflecting a 21% increase year-to-date and a 42% rise on an annual basis. The company’s strong performance has contributed to the bullish market sentiment, making it a popular stock for investors.
The announcement of the bonus issue has further fueled investor optimism. Analysts suggest that this move will likely boost investor confidence and attract new shareholders to the stock. The decision to issue bonus shares comes at a time when Wipro has been expanding its operations and staying competitive in the IT sector, maintaining steady growth and market share.
Why Is This Bonus Issue Significant for Shareholders?
The issuance of bonus shares serves multiple purposes, but most importantly, it benefits shareholders in several ways:
- Increased Liquidity: With more shares in circulation, the stock becomes more liquid, which can help with ease of trading.
- Reward for Loyal Shareholders: Investors who have held Wipro shares will see their holdings increase without any additional financial outlay, helping them benefit from the company’s success.
- Positive Market Sentiment: Bonus issues are often seen as a sign of confidence from the management, which can boost market sentiment.
What to Do Before December 2, 2024?
To be eligible for the 14th bonus issue, shareholders must own Wipro shares before the market closes on December 2, 2024. Investors interested in gaining additional shares should make sure to purchase the stock in advance, as the record date for the bonus issue is December 3, 2024.
Also Read: Wipro Bonus Shares Record Date: What Shareholders Should Know Before Dec 2, 2024
