Wipro bonus shares: Shares of Wipro Ltd will turn ex-date for bonus issue on Tuesday in the ratio of 1:1. Today would also be the record date for eligible shareholders, who would get Wipro's bonus shares. To recall, The IT giant announced at least three bonus issues before this in the past 15 years. Overall, it declared nine bonus issue till date, as per data compiled with corporate database AceEquity.
The latest bonus issue is Wipro's first since 2019. Wipro declared its previous bonus issue in 2019 in the 1:3 ratio. The stock went ex-bonus on March 6, 2019. Wipro had announced bonus shares in the ratio of 1:1 in 2017. Before that, Wipro announced bonus shares in the ratio of 2:3 in 2010. It announced bonus shares in 2005 (1:1) and 2004 (2:1). In 1997, Wipro announced a bonus issue in the 2:1 ratio. It also announced 1:1 bonus issues each in 1995 and 1992.
Last year, the IT major also came out with a share buyback plan.
Fundamentally, the demand environment has been challenging for Wipro, as it is facing certain client-specific issues. But, there are initial signs of uptick in the BFSI vertical. The current combination of a favourable portfolio, new CEO Srini Pallia and inexpensive valuations make for an attractive risk-reward profile for Wipro, they said.
Wipro's guidance for Q3FY25 of minus 2 per cent to 1 per cent revenue growth in constant currency terms remains muted. Analysts expect a gradual recovery in H2FY25 led by ramping of recently signed deals.
Nuvama Institutional Equities in a note last week maintained its earnings projections for the IT major, but raised its target valuation to 25 times estimated FY27 EPS from 20 times on sharper growth recovery. The brokerage now rates Wipro as ‘Buy’ from ‘Hold with a target price of Rs 700 from Rs 520 earlier.
"Wipro is at THAT crossroads again — new CEO, new expectations, new hopes. But there are two big differences this time: i) its portfolio with higher exposure to discretionary spends is favourably placed to ride the macro recovery; and ii) the CEO this time is an internal lifer, looking to take the old guard along on the path of achieving growth on a par with peers," Nuvama said.