Wipro Limited is a leading global end-to-end IT transformation, consulting and business process services provider and a pioneer in the Indian Market with decades of experience. The company harness the power of application, cognitive computing, hyper-automation, robotics, cloud, analytics and emerging technologies to help their clients adapt to the digital world and make them successful.
Bonus history and analysis
Wipro Limited is an Indian multinational technology company. It is one of the six leading Indian Big Tech companies and is about to consider its 14th bonus issue. The first time was in October 1971. In all instances, the company had considered different bonus issues. In the first bonus issue the ratio was 1:3 (that means for every three shares held, shareholders would receive an additional one share), then for the next 6 bonus issues, the ratio was 1:1 (that means for every share held, shareholders would receive an additional 1 share).
The company then announced bonuses in a 2:1 ratio (that means for every share held, shareholders would receive an additional 1 share) for the next 2 years. Following these, the company announced a bonus of 1:1 in 2005, a bonus of 2:3 in 2010, and again a bonus ratio of 1:1 in 2017. The last time when the bonus share was announced was in January 2019 with a bonus ratio of 1:3.
To give you an example. In 1971, if a person held a quantity of 100 shares pre-bonus ( at the beginning) and the person would have remained idle (no selling or additional buying), that would have turned into a quantity of 6,82,667 shares today.
| Bonus Announcement | Bonus Ratio | Record Date | Ex- Bonus Date | Bonus Shares Received | Total Quantity held |
|---|---|---|---|---|---|
| At the start of 1971 | – | – | – | – | 100 |
| 31-10-1971 | 1:3 | – | – | 33 | 133 |
| 22-10-1981 | 1:1 | – | – | 133 | 267 |
| 22-10-1985 | 1:1 | – | – | 267 | 533 |
| 15-11-1987 | 1:1 | – | – | 533 | 1,067 |
| 22-10-1989 | 1:1 | – | – | 1,067 | 2,133 |
| 30-07-1992 | 1:1 | 10-09-1992 | 12-08-1992 | 2,133 | 4,267 |
| 01-02-1995 | 1:1 | – | 24-02-1995 | 4,267 | 8,533 |
| 13-09-1997 | 2:1 | 17-11-1997 | 20-10-1997 | 17,067 | 25,600 |
| 16-04-2004 | 2:1 | 28-06-2004 | 25-06-2004 | 51,200 | 76,800 |
| 22-04-2005 | 1:1 | 23-08-2005 | 22-08-2005 | 76,800 | 1,53,600 |
| 23-04-2010 | 2:3 | 16-06-2010 | 15-06-2010 | 1,02,400 | 2,56,000 |
| 25-04-2017 | 1:1 | 14-06-2017 | 13-06-2017 | 2,56,000 | 5,12,000 |
| 18-01-2019 | 1:3 | 07-03-2019 | 06-03-2019 | 1,70,667 | 6,82,667 |
As we can observe from the above tables, the potential for wealth creation through bonus shares becomes evident for long-term investors. The investor’s holding quantity continuously increases due to bonus issues.
After a 1:1 bonus issue (for every share held, one additional share), the quantity held by a person of 100 shares would multiply into 13,65,333 shares this time.
Wipro announced a one-for-one bonus issue along with its second quarter results and set a record date of December 3 for determining eligible shareholders. This means that shareholders who own Wipro shares by the end of Monday’s (02 December 2024) trading session will receive an equal number of bonus shares.
Wipro share performance
Wipro Ltd have delivered impressive 20% returns on a YTD basis a little lower than the benchmark NIFTY IT index, which gave over 21% during similar period. While on a annual basis, the shares of Wipro have delivred robust 42% returns beating its benchmark index, which gave 32% returns in the similar period. Ahead of its bonus issue, the shares of Wipro Ltd closed 1.1% higher on the NSE at ₹579 apiece on Friday, November 29.
Conclusion
Wipro is the Nifty constituent that has issued the most number of bonus shares to its shareholders in its history as a public company for a record 13 times bonus issue in their history. Wipro’s bonus issue over the years has multiplied share quantity by over 6,826 times since the first bonus. However, with the 14th bonus issue this year, the quantity will soar to a new high considering one has held the shares since 1971.
Disclaimer:
This article is only for educational purpose. We do not recommend any particular stock, securities and strategies for trading. The stock quoted are exemplary and are not recommendatory. The stock names mentioned in this article are purely for showing how to do analysis. Take your own decision before trading and investing.
