Wipro share hits 19-year high on shareholders' nod to bonus issue

Shares of Wipro touched 52-week high on local bourses a day after the IT major said it has received approval from majority of its shareholders for the issue of bonus shares and increase in authorised share capital.

"The board of directors has fixed March 7, 2019 as the Record Date to determine eligible shareholders entitled to receive the bonus equity shares (including stock dividend on ADS)," Wipro said in a filing to the Bombay Stock Exchange.

The large cap stock opened marginally higher at 379.70 level, but buying kicked up a gear on afternoon with scrip jumping as much as 4.48 per cent and touched its highest level in 19 years to Rs 390.

In a similar fashion, stock ended at Rs 386.50 apiece, up 2.05 per cent, against previous closing price of Rs 378.75 on the national stock exchange. During the day's trade, the scrip touched an intra-day high and low of Rs 386.70 and Rs 379.25, respectively.

"Resolutions have been approved by members with requisite majority and shall be deemed to have been passed on February 22, 2019, being the last date of receipt of postal ballot forms/e-voting," the company informed the exchange.

Also Read: Jet Airways share price falls after SBI considers moving NCLT for recovering loan

In January, the board of the company had approved an issue of bonus equity shares in the proportion of 1:3, that is 1 bonus equity share of Rs 2 each for every 3 fully paid-up equity shares held and a bonus issue [stock dividend on American Depositary Share (ADS)] of 1 (One) ADS for every 3 (Three) ADS held.

Post the approval, the company's authorised share capital stands increased from Rs 1,126.50 crore to Rs 2,526.50 crore by creation of additional 700 crore equity shares of Rs 2 each, it added.

At the end of December quarter, the company had Rs 46,847.9 crore in free reserves, securities premium account and capital redemption reserve account.

The company's board also approved the scheme of amalgamation of Wipro Technologies Austria GmbH, Wipro Information Technology Austria GmbH, New Logic Technologies SARL and Appirio India Cloud Solutions with Wipro.

(with inputs from PTI)

Edited by Chitranjan Kumar