Wipro Board to Consider Bonus Share Issue Alongside Q2 Results for 2024

Wipro Ltd to Consider Bonus Share Issue in Upcoming Board Meeting on October 17, 2024

Wipro Ltd’s board of directors is set to review a proposal for a bonus issue of shares during its board meeting scheduled for October 16-17, 2024. According to a filing with the Bombay Stock Exchange (BSE) on Sunday, October 13, the company will consider issuing bonus shares in line with the applicable regulations under the Companies Act, 2013 and the Securities and Exchange Board of India (SEBI) Issue of Capital and Disclosure Requirements Regulations, 2018.

The potential bonus issue is part of the agenda for Wipro’s upcoming meeting, where the board will also discuss its Q2 financial results for the period ending September 30, 2024.

Wipro’s Stock Performance Ahead of the Meeting

On Friday, Wipro Ltd’s shares closed 0.77% higher at ₹528.95, compared to ₹524.90 at the previous session’s close. The positive price movement could be attributed to investor anticipation surrounding the possible bonus share issuance and upcoming quarterly results.

Wipro Q2 Financial Results for 2024-25

In addition to the bonus issue discussion, Wipro will announce its Q2 financial results for the July-September period after the stock market closes on Thursday, October 17, 2024. This announcement will follow the company’s established practice of releasing quarterly earnings after market hours, as stated on Wipro’s official website.

The firm has confirmed that the outcome of the board meeting will be communicated to the stock exchanges promptly after the meeting concludes on October 17. Additionally, senior management will host a post-results call at 7:00 PM IST to discuss the company’s financial performance and address investor and analyst queries.

What Is a Bonus Share Issue?

A bonus issue involves a company issuing fully paid additional shares to its existing shareholders at no extra cost, based on the shares they already hold. This move is typically used to increase the liquidity of the stock and make the shares more affordable for investors by lowering the stock price. The number of bonus shares allocated is determined by the bonus ratio, which will be announced by Wipro following the board meeting.

Eligible shareholders—those who own shares before the record date set by the company—will receive these bonus shares. Once issued, these bonus shares will hold the same rights as the existing shares, including dividends and voting rights, and will rank pari-passu in all respects.

Expectations from Wipro’s Q2 2024-25 Earnings

Investors and analysts are keenly watching Wipro’s second-quarter earnings report. According to reports, Wipro posted a 4.64% year-on-year increase in net profits in its April-June results, although revenue from operations slightly declined by 1.1% compared to the same period in the previous year.

The Q2 2024-25 earnings announcement will be closely monitored to see how the company performs amid a competitive IT services market, with industry giants focusing on digital transformation and consulting services.

What to Expect From Wipro’s Bonus Share Issue

Should Wipro’s board approve the bonus issue, it is likely to improve investor sentiment and drive further trading activity. Bonus shares make the stock more attractive by increasing the number of shares available without diluting the shareholders’ equity. Additionally, they often lead to higher liquidity in the stock market, making it easier for investors to trade the company’s shares.

The upcoming board meeting will provide crucial insights into Wipro’s capital allocation strategy, and shareholders will be eager to see the company’s plans for rewarding them with bonus shares.

About Wipro Ltd

Wipro Ltd is a leading Indian IT company specializing in technology services and consulting. The firm provides innovative solutions that address complex challenges related to digital transformation, leveraging expertise in consulting, design, engineering, and operations. Over the years, Wipro has been at the forefront of helping businesses navigate their digital journeys through cutting-edge technologies and strategic consulting services.

Conclusion

With Wipro’s board meeting scheduled for mid-October, both the potential bonus share issue and the Q2 earnings results are key events that could influence the company’s stock performance. Investors will be watching closely as Wipro communicates the outcome of its discussions and its plans to issue bonus shares to shareholders.

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