Wipro Shares Now Trade Ex-Bonus: Check Eligibility for the 1:1 Bonus Issue

Wipro Ltd. has officially gone ex-bonus on December 3, 2024, following its announcement of a 1:1 bonus issue. This means eligible shareholders—those who held Wipro shares as of December 2, 2024—will receive one additional share for each share they already own. The bonus issue is a significant development, and understanding its impact on share prices and eligibility is crucial for investors.

What is a Bonus Issue and Why Does It Matter?

A bonus issue is when a company issues additional shares to its existing shareholders for free, typically to increase liquidity and make shares more accessible. In Wipro’s case, the bonus ratio is 1:1, meaning shareholders will double their holdings without any additional cost. However, the stock price adjusts downwards in proportion to the bonus shares issued. So, while investors will hold twice the number of shares, the price of the stock will be lower than before the bonus issue.

Before the bonus, Wipro shares were trading around ₹579, but after the bonus adjustment, the price is expected to drop, though the value of the investment remains unchanged. This is a common occurrence with bonus issues and is not a sign of any market decline.

Wipro’s Bonus Issue History: A Tradition of Rewarding Shareholders

This is Wipro’s first bonus issue since 2019, when it issued shares at a 1:3 ratio. Historically, Wipro has been one of the most generous companies in terms of bonus issues, having issued bonus shares 13 times since its first in 1971. The company’s commitment to rewarding shareholders is clear, and this bonus issue continues that legacy.

The 1:1 bonus issue in 2024 marks a significant milestone and provides shareholders with an opportunity to benefit from increased liquidity and a more affordable stock price. Wipro has been consistent in its bonus issues, which have helped retail investors increase their holdings over the years.

Wipro’s Stock Performance and Future Outlook

Wipro has seen solid stock performance in 2024, with shares up by 21% year-to-date. The company’s stock price reached a recent high of ₹596, and it continues to show positive momentum, up by 7% in the past month alone. Despite facing challenges in the IT sector, particularly with some client-specific issues, Wipro has managed to maintain its growth trajectory, and early signs of recovery in its BFSI vertical offer optimism for the future.

How to Check Your Eligibility for the Bonus Issue

To be eligible for Wipro’s 1:1 bonus issue, investors had to be holding Wipro shares as of the record date, December 2, 2024. Those who were shareholders on that date are entitled to receive one bonus share for each share they held. Investors can check their demat accounts or consult with brokers to confirm how many bonus shares they will receive.

The bonus shares will typically be credited to eligible shareholders’ accounts within a few days of the bonus issue date, so investors should monitor their accounts to ensure the credits are made.

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