Shares of IT services giant Wipro Ltd traded lower on Tuesday, December 3, as the stock turned ex-bonus following the company's recently announced 1:1 bonus share issue. This development marked a significant milestone, being the 14th bonus issue in the company's history, further strengthening its legacy as a favoured choice in the share market investment space.
Stock performance
After adjusting for the bonus issue, Wipro shares opened at ₹295.35 on the NSE and briefly climbed to an intraday high of ₹296.2. However, the momentum waned, and the stock slipped to a low of ₹290.6 during late morning trade. By 10:20 AM, the stock was trading near its day's low at ₹290.95 per share, reflecting a marginal decline of half a per cent.
Bonus issue details
The bonus issue, announced earlier this year, provides one bonus equity share for every fully paid-up equity share held by shareholders as of the record date, December 3. For American Depositary Share (ADS) holders, the ratio remains 1:1.
This marks the latest chapter in Wipro's impressive history of shareholder rewards. An investor holding 100 shares in 1971 would now own 13,65,333 shares after this bonus issue, a testament to the company's consistent growth and shareholder-friendly policies.
Financial snapshot
Wipro's September quarter results showcased a mixed bag of performance. While gross revenue dipped 1% year-on-year to ₹22,300 crore, the company reported a net income of ₹3,210 crore, up 21.3% compared to the same quarter last year.
The IT services segment, Wipro's core business driver, is projected to deliver revenue in the range of $2,607 million to $2,660 million in the upcoming quarter, with guidance translating to a potential sequential change of -2.0% to 0.0% in constant currency terms.
Investment outlook
Wipro's consistent track record of bonus issues and its robust dividend history continue to make it an attractive option for those looking to invest in stocks. However, the recent dip in stock price and modest revenue projections signal cautious optimism for investors.
As Wipro navigates evolving industry dynamics and global macroeconomic pressures, its long-term growth strategy and commitment to rewarding shareholders remain compelling factors for the share market investment community.
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