Wipro first issued bonus shares to investors in 1971 and its last bonus announcement was in 2019, where it handed out 3 additional shares for every 1 share held in the company.
The company has rewarded investors with a bonus issue 6 times between 1981 and 1996 and later in 1997, 2004, 2005, 2010, 2017 and 2019. In the last 10 years, Wipro gave out bonus shares 5 times.
In comparison, Infosys had issued bonus shares 8 times in its history as a listed company. TCS, on the other hand, issued bonus shares only on 3 occasions.
A company issues bonus shares for their shareholders in order to increase the liquidity of the stock as well as with the aim to decrease its stock price to make it affordable for investors.
Bonus shares are fully paid additional shares issued by a company to its existing shareholders. When a firm issues bonus shares, its shareholders do not have to incur any extra costs to get them. The number of bonus shares you receive depends on the number of shares of the firm you already hold.All shareholders who own shares of the firm before the record date, which is determined by the firm, are eligible for additional shares.The bonus shares once allotted will rank pariβpassu in all respects and carry the same rights as the existing equity shares and will be entitled to participate in full in any dividend and other corporate actions recommended.
In its second quarter, analysts expect Wipro to have the weakest performance among peers with flat sequential growth
“We expect revenues to be flat quarter-on-quarter in constant currency terms versus its guided band of -1% to +1% for. We see the company guiding for -2 to 0% revenue growth in 3Q,” brokerage Nomura said.
Meanwhile, EBIT margins are likely to expand 40 bps led by continued cost control program and higher utilisation at Capco despite one month impact of salary hikes.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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