Wipro Bonus Issue: 1 Free Share On Existing 1 Piece, Record Date On December 3; BUY/SELL/HOLD The Stock

Wipro Bonus Issue: The IT giant, Wipro's bonus issue is among the most awaited in the market. Finally. The company has fixed the record date for its upcoming 1:1 bonus issue in December. Simply put, Wipro will reward investors with 1 free share of the existing 1 piece. Ahead of the bonus issue, the consensus recommendation in Wipro shares is a mixed bag, however, the highest target price is set at Rs 575.

Wipro Bonus Issue:

As per the regulatory filing, Wipro 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.

Notably, Wipro has a strong track record of bonus issuance. The last bonus issuance by Wipro was a 1:3 ratio in March 2019. This followed a bonus issue of 1:1 in June 2017, and a 2:3 bonus issue in June 2010. Prior to that, the company delivered 1:1 bonuses and 2:1 bonuses in August and June of 2005 and 2004 respectively.

Wipro Share Price:

After market hours of November 21, Wipro's share price ended at Rs 557.20 apiece, down by 0.8% on BSE with a market cap of Rs 2,91,513.36 crore. The stock is still near its 52-week high of Rs 583 apiece, while its 52-week low is at Rs 393.20 apiece.

The stock's price-to-equity ratio is at 30.50x, while its return on equity is at 15.13%.

Wipro stock's weekly performance is down by 2.6%. However, year-to-date, the stock has surged by 17% on BSE, outperforming peers like TCS.

Wipro Share Buy Or Sell Or Hold?

As per Trendlyne data, the consensus recommendation from 41 analysts for Wipro Ltd. is SELL. Of the total, only 4 analysts have recommended STRONG BUY on Wipro, while another 4 have suggested just BUY. But a total of 14 analysts have suggested SELL and 10 others recommended Strong SELL. EPS is expected to grow by 12.3% in FY25. The average 1-year target price on Wipro is about Rs 530.27 apiece, hinting at nearly 5% potential downside ahead.

Meanwhile, brokerage Kotak Institutional Equities has suggested selling on Wipro for a target price of Rs 500. On the other hand, Antique Stock Broking has advised HOLD with a target price of 575.

Earlier this week, Wipro announced a collaboration to help enterprises secure the open-source components within their software applications. Recently, Wipro's corporate investment arm - Wipro Ventures - invested in Lineaje, a US-based software supply chain security company.

This collaboration with Wipro not only validates Lineaje's innovative approach but also expands its reach and resources to further revolutionize software supply chain security. Wipro and Lineaje's joint offerings will help enterprise customers centralize their software supply chain risk management and address critical vulnerabilities identified with the Lineaje platform.

About Wipro:

Wipro Limited, is a leading technology services and consulting company focused on building innovative solutions that address clients' most complex digital transformation needs.