Wipro on Monday said the date for issuing bonus or stock dividend to the holders of its American Depository Receipts is yet to be finalised, as its ADRs witnessed steep fluctuations in pre-market trading on the New York Stock Exchange.
ADRs are instruments denominated in U.S. dollars and the underlying shares are that of a foreign company.
According to reports, the exchange has suspended trading in Wipro ADRs. As per trading data, the company's ADRs plunged over 47 percent to $10.45 in pre-market trade today. The steep volatility has been witnessed ahead of the company fixing June 14 as the record date for issuance of bonus shares to the shareholders in India.
In a late evening filing, Wipro said that in view of Monday's market activity in its stock, the NYSE has contacted the company in accordance with its usual practice.
"The company felt that it was important to clarify to the market that the payable date and ex-dividend date for its ADR (American Depository Receipts) bonus issue, or stock dividend, are yet to be determined," Wipro said in a filing to the exchanges.
According to Wipro, at NYSE, for ADR stock dividends or bonus issue, the ex-dividend date is set as the first business day after the stock dividend is paid, which is also after the record date.
"Therefore NYSE has not yet declared an ex-dividend date for Wipro's ADR program. Once the payable date is declared NYSE will announce the ex-dividend date for the ADR," the filing said.
The IT major's board of directors has fixed June 14 as the record date to determine eligible shareholders entitled to receive the bonus equity shares/stock dividend, it had said in a filing to the Indian exchanges on May 30.
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