Wipro Eyes Bonus Shares as Board Meets for Q2 Results

Wipro shares are expected to grab attention on Monday after the company, India’s third-largest software exporter, announced that its board will discuss a proposal for issuing bonus shares alongside its financial results for the quarter ending September 2024.

The board meeting is scheduled for October 16-17. The company stated that the proposal will comply with the Companies Act, 2013, and the Securities and Exchange Board of India regulations.

Bonus shares are additional shares given to existing shareholders to boost stock liquidity and lower the share price, making it more affordable for investors. Shareholders do not have to pay anything for these shares; they simply receive them based on how many shares they already own. All shareholders before the record date set by the company are eligible for these additional shares.

Once issued, bonus shares will have the same rights as existing shares, allowing shareholders to fully participate in dividends and other corporate actions.

In Q1 FY25, Wipro reported a consolidated net profit of ₹3,003 crore, up 4.6% from ₹2,870 crore in the same period last year. However, revenue from operations decreased by 4% to ₹21,964 crore from ₹22,831 crore a year earlier. On Friday, Wipro’s shares closed at ₹548.60, up 3.7% on the BSE, while the benchmark Sensex fell by 0.28%. Wipro’s shares have increased by 11% in 2024 and 31% over the past two years, giving the company a market capitalization of ₹2,28,993 crore.