BackWipro shares jump 5%, stock trades ex-bonus
In January, Wipro had announced 1:3 bonus share offerWipro fixed March 7 as the record date to determine eligible shareholders entitled to receive the bonus shares
PremiumShares of IT major climbed nearly 5% in early trade today as the stock turned ex-bonus today, meaning the stock was adjusted for bonus issue. In January, Wipro had approved the issuance of bonus equity shares in the proportion of 1:3, that is one bonus equity share of for every three fully paid-up equity shares held as on the record date. At day’s high, shares jumped to ₹285.9 on NSE.
Wipro later fixed March 7, 2019 as the record date to determine eligible shareholders entitled to receive the bonus equity shares.
The bonus equity shares will be issued out of free reserves and/or the securities premium account or the capital redemption reserve and/or the capital redemption reserve account of the company available as at December 31, 2018.
Post-bonus, the paid-up equity share capital is expected to be around ₹1206.68 crore, consisting of 603.34 crore equity shares of ₹2 each, Wipro said in the January filing.
In the same filing, Wipro had also said that as on December 31, 2018, the company had an aggregate amount of ₹46,847 crore in free reserves, securities premium account and capital redemption reserve account.
In the December quarter, Wipro posted fiscal third-quarter (Q3 2018-19) revenue growth that was in line with analysts’ estimates. Wipro’s dollar revenue improved 1.8% sequentially to $2.04 billion in the quarter ended 31 December. Revenue grew 3.7% on a year-on-year basis. In constant currency terms, revenue rose 2.4% on a sequential basis.
Net profit totaled $366 million in Q3 compared to $260 million at the end of the September quarter (Q2 2018-19). Better operational efficiency helped the firm as the operating margin improved to 19.8%, compared to 18.1% in Q2.
In noon trade, Wipro shares had pared some gains and were up 2% at ₹278 on NSE.
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