Wipro Limited, one of India’s leading IT companies, has marked a significant milestone with its latest bonus share announcement. The company’s shares are set to turn ex-date for a 1:1 bonus issue, representing its ninth bonus issue in history and the first since 2019. This strategic move demonstrates Wipro’s commitment to enhancing shareholder value.

The combination of new leadership, strategic portfolio positioning, and favorable market conditions creates an optimistic outlook for Wipro. While near-term challenges exist, the company’s track record of shareholder value creation through bonus issues and strategic initiatives positions it well for future growth. Investors should monitor the execution of growth strategies under the new CEO and the realization of projected recovery in the second half of FY25.

Wipro Bonus Shares: Historical Bonus Pattern

2019: 1:3 ratio bonus issue
2017: 1:1 ratio bonus issue
2010: 2:3 ratio bonus issue
2005: 1:1 ratio bonus issue
2004: 2:1 ratio bonus issue
1997: 2:1 ratio bonus issue
1995: 1:1 ratio bonus issue
1992: 1:1 ratio bonus issue

Current Market Position

The company faces:

Challenging demand environment
Client-specific issues
Early signs of BFSI vertical recovery
New leadership under CEO Srini Pallia

Key indicators include:

Q3FY25 guidance: -2% to 1% revenue growth
Expected gradual recovery in H2FY25
Positive analyst ratings
Increased target valuations

Investment Perspective

Upgraded rating to ‘Buy’ from ‘Hold’
Raised target price to Rs 700 from Rs 520
Increased target valuation to 25x FY27 EPS
Maintained positive earnings projections

Favorable factors include:

New CEO leadership
Portfolio optimization
Macro recovery potential
Competitive positioning

Strategic Advantages

Higher exposure to discretionary spending
Internal leadership promotion
Strong portfolio positioning
Competitive growth potential

FAQs

Q1: When will Wipro’s bonus shares be credited to shareholders’ accounts?

The bonus shares will be credited to eligible shareholders’ accounts after the record date, which is set for today. Shareholders must be registered holders of Wipro shares on the record date to receive the bonus shares in the 1:1 ratio.

Q2: How does this bonus issue compare to Wipro’s previous bonus issues?

This is Wipro’s ninth bonus issue and follows a 1:3 bonus ratio announced in 2019. The current 1:1 ratio is more generous than the previous issue, matching the company’s bonus issues from 2017, 2005, 1995, and 1992.