Wipro Q2 results: IT firm announces 1:1 bonus share issue for shareholders

Wipro, one of India’s leading IT services companies, has announced the issue of bonus shares in a 1:1 ratio as part of its financial results for the second quarter (Q2) that ended in September 2024. The bonus issue means that shareholders who hold Wipro shares on the record date will receive one additional share for every share they currently own.
In a filing with the stock exchanges, Wipro’s Board of Directors shared details about the bonus issue, and said, “The Board has recommended, subject to shareholders’ approval, the issuance of 1 (one) bonus equity share of Rs 2/- each for every 1 (one) fully paid-up equity share held.” This announcement applies to both equity shares and American Depository Shares (ADS). Shareholders who hold Wipro shares in their demat accounts on the record date will automatically receive additional shares.
The company has yet to announce the record date for this bonus issue, which is expected to be communicated in the coming days. Bonus shares will be issued from the company’s free reserves, securities premium account, and/or capital redemption reserve account.
Wipro’s current paid-up equity share capital stands at Rs 1,046.3 crore, comprising 523.14 crore shares of Rs 2 each. After the bonus shares are issued, this will double to nearly Rs 2,092.59 crore, with a total of 1,046.3 crore shares. The exact number of bonus shares to be issued will depend on the total paid-up equity share capital as of the record date.
The company has committed to credit or dispatch the bonus shares to eligible shareholders within two months of the Board’s approval, setting an estimated deadline of December 15, 2024. Wipro has issued bonus shares five times in the past, most recently in 2017, according to data from Trendlyne.
Along with the bonus share announcement, Wipro reported strong financial results for Q2 FY2024. The company’s net profit for the quarter jumped by 21% to Rs 3,209 crore, compared to Rs 2,646 crore in the same quarter last year. This growth reflects Wipro’s ability to improve operational performance and drive profitability, despite challenges in the IT services industry.
The firm’s Chief Financial Officer, Aparna Iyer, commented on the positive results: “On the back of operational improvements, we further expanded our margins by 35 basis points, and our EPS grew 6.8% quarter-on-quarter. Our operating cash flow remains robust at 132.3% of net income for Q2, and cumulatively, we generated nearly $1 billion in operating cash flow in the first half of this year.”