Wipro Share Price: Tech giant Wipro is among the best bonus-paying stocks on exchanges with a history of at least 13 bonus rewards since the early 1980s. That being said, continuing on its excellency, Wipro is going to deliver its 14th bonus issue and its last date to be eligible is fixed on December 3rd. Wipro shares gained to near its 52-week high levels on December 2nd, ahead of the bonus record date. The new bonus issue is of a 1:1 ratio. Amidst this, should you buy Wipro's share price?
Wipro Share Price:
After market hours, Wipro stock ended at Rs 584.55 apiece, up by 1.14% on BSE, with a market cap of Rs 3,05,842.08 crore. The stock is near its 52-week high of Rs 596 apiece. YTD, Wipro stock zoomed by 23% on BSE.
Wipro Bonus Issue:
Tech player has fixed Tuesday, December 3, 2024, as the Record Date to determine the equity shareholders of the Company eligible for bonus equity shares (including Stock Dividend on ADS) of the Company.
Wipro declared the issuance of bonus equity shares in the proportion of 1:1. This means that the company will allot 1 (One) bonus equity share of Rs 2/- each for every 1 (One) fully paid-up equity share held and a bonus issue.
Wipro has been rewarding investors with bonus issues since 1971. The first bonus issue was in 1971, followed by 1:1 bonus shares rewarded six times in 1981, 1985, 1987, 1989,1992, and 1994. Later ahead, in 1997 and 2004, Wipro paid its second-highest bonus issue in history to the tune of 2:1 ratio. After that, the bonus issue was back to 1:1 in 2005. But it was in 2010, Wipro delivered its highest bonus of 2:3 ratio. Prior to Covid, Wipro paid 1:1 bonus shares in 2017 and 1:3 bonus shares in 2019.
After about 5 years, Wipro will deliver its 14th bonus shares in a 1:1 ratio in December 2024. The record date is December 3rd to determine eligible shareholders.
Bonus shares are one of the many corporate actions that listed companies announce on several occasions. Bonus shares are like incentives which are free of cost given to investors. Under this corporate action, new shares are issued at the existing Face Value of equity shares of the company. Hence, the face value remains the same post-bonus issue.
Wipro Has a Rs 700 Target price:
On the valuation, brokerage Nuvama said, "All along, Wipro has stayed a high-FCF company (112% of net income over last four years) with a highly efficient capital allocation policy. With the stock trading at a relatively attractive 23x FY26E PE, at a discount to almost all peers, and yielding a dividend of 3%, we find the risk-reward highly attractive; upgrade to 'BUY'." The target price is set at Rs 700 and the timeframe is of 12-months.
About Wipro:
Wipro is a leading technology services and consulting company focused on building innovative solutions that address clients' most complex digital transformation needs. Leveraging our holistic portfolio of capabilities in consulting, design, engineering, and operations, the company helps clients realize their boldest ambitions and build future-ready, sustainable businesses.
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