Wipro Proposes Issuance Of 1:1 Bonus Shares

Wipro Ltd. recommended on Thursday to its shareholders the issue of bonus shares in the ratio of 1:1 for their approval, according to an exchange filing.

The bonus issue will be an equity share of Rs 2 for every fully paid-up equity share held by the eligible shareholders. The record date for eligible shareholders is yet to be communicated.

The company said on Sunday that its board of directors will consider the issue of bonus shares.

This marks the fourth bonus issue for the information technology company since its listing and the first in this decade. The last bonus issue was approved on Mar. 06, 2019, at a 1:3 ratio, according to BSE data.

The company's first bonus issue dates back to fiscal 2010, with a 2:3 ratio. This was followed by a 1:1 issue on Jun. 13, 2017.

Wipro posted a 6% sequential rise in its net profit to Rs 3,227 crore, which is higher than the consensus estimate of Rs 3,009 crore shared by analysts tracked by Bloomberg.

The company's revenue rose 1.5% over the previous three months to Rs 22,302 crore in the quarter ended Sept. 30, 2024, according to an exchange filing on Thursday. That compares with the consensus estimate of Rs 22,235 crore of analysts tracked by Bloomberg.

Wipro's earnings before interest and taxes were up 1.3% to Rs 3,672 crore. Bloomberg analysts estimated an EBIT of Rs 3,625 crore. The company's EBIT margin was flat at 16.5%, as compared to an estimated 16.3%.

Shares of Wipro closed 0.65% lower at Rs 528.8 apiece on the BSE, compared to a 0.61% decline in the benchmark Sensex. The quarterly results were declared after market hours.