Wipro shares trade ex-bonus; here is what it means for investors
Wipro Share Price, Wipro Bonus Stock News: Wipro shares inched lower on December 3, trading ex-bonus. The stock dropped to as low as Rs 290.3 apiece on BSE. Earlier, the Bengaluru-based IT major declared a 1:1 bonus.
Wipro Share Price, Wipro Bonus News: Wipro shares inched lower on Tuesday as the Bengaluru-headquartered IT major's stock traded ex-bonus on exchanges. The Wipro stock slipped to as low as Rs 290.3 apiece during the session on BSE and NSE, marking an adjusted decline of 0.7 per cent from its previous close.
At 11:30 am, Wipro shares traded at Rs 290.4 and Rs 290.3 apiece on BSE and NSE, respectively. Wipro had declared a bonus of 1:1—read as 'one for one' in market parlance, meaning one bonus share for every equity share held.
Wipro Bonus Shares
In October, Wipro announced the bonus issuance along with its financial results for the September quarter.
This is the IT major's first bonus in more than five years.
What does the latest Wipro bonus mean?
Those who held at least one equity share of Wipro till the record date (December 2) will be eligible to receive an equal number of bonus shares.
The ex-date of December 3 is essentially the cut-off date when the Wipro stock started to trade without the value of the imminent bonus issue.
Simply put, a record date is the date on which investors' eligibility is decided whereas an ex-date is the date that reflects the change in the market price minus the bonus shares.
Does the value of your Wipro holdings change?
No, the development only impacts the total number of shares.
The overall value of Wipro shares held by investors remains the same except price movements.
Previous Wipro Bonus
Wipro had in January 2019 declared a 1:3 (one for three) bonus bonus to its shareholders. In other words, that bonus meant one bonus share for every three equity shares held.
Wipro Q2 FY25 Earnings
In October, Wipro reported a set of financial results that largely met analysts' expectations.
Its net profit rose 6.9 per cent sequentially to Rs 3,208.8 crore while its IT service margin improved by 30 bps to 16.8 per cent.
Zee Business analysts had estimated the IT major's second-quarter net profit at Rs 2,950 crore and its IT margin at 16 per cent.
Catch all the latest stock market updates here. For all other news, visit Zeebiz.com.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.