Wipro Shares Erase Gains As Stock Trades Ex-Bonus
Wipro's board of directors had approved a 1:1 bonus share issue in October.
Shares of information technology-giant Wipro Ltd. erased gains after marginally rising in early trade on Tuesday, as they traded ex-bonus on Tuesday.
Wipro's stock opened high and gained as much as 1.34% at Rs 296.20, and pared these gains to trade 0.33% lower at Rs 291.30 as of 09:42 a.m.
Wipro's board of directors had approved a 1:1 bonus share issue in October. Eligible shareholders will receive one additional equity share, with a face value of Rs 2, for every fully paid-up share they hold. This marks the 13th bonus issue by Wipro since 1971, with the most recent one being a 1:3 bonus approved on March 6, 2019.
As one of India's largest information technology companies, Wipro has nearly 22.4 lakh shareholders. After the bonus issue, these shareholders will see their holdings double without any additional investment.
Bonus Shares Trade Timeframe
The Securities and Exchange Board of India has shortened the time frame for the credit and trading of bonus shares to two working days under the T+2 system, effective from October.
Under this system, the allotment date for bonus shares will be one day after the record date, and the shares will be available for trading on the second day. For instance, if you are a Wipro shareholder as of Dec. 2, the bonus shares will be credited to your demat account on Dec. 4 and will be available for trading starting Dec. 5.
Bonus shares serve as an effective method for companies to reward shareholders, enhance liquidity, and maintain financial flexibility.
Wipro Share Price Today
The scrip rose as much as 1.34% to 296.20 apiece, the highest level since Nov. 27, 2024. It pared gains to trade 0.33% lower at Rs 291.30 apiece, as of 09:42 a.m. This compares to a 0.17% advance in the NSE Nifty 50.
It has risen 24.36% on a year-to-date basis. Total traded volume so far in the day stood at 3.1 times its 30-day average. The relative strength index was at 59.96.
Out of 45 analysts tracking the company, nine maintain a 'buy' rating, 11 recommend a 'hold' and 25 suggest 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 80.1%.
