Wipro Bonus Issue: After emerging as top gainers in October 2024 month, IT giant Wipro share price corrected sharply at the start of November month. Wipro stock is down by 4% on a weekly basis. Nonetheless, the stock is still among the top performing IT stocks of 2024 with double-digit gains of nearly 40% year-to-date. Going ahead, Wipro will be in focus for its upcoming bonus issue whose record date is expected to be declared in due course.

Wipro Share Price:

The large-cap IT stock ended at Rs 543.65 apiece, up by 0.60% on BSE after market hours of November 5th, when the US election kick-started. The company’s market cap is around Rs 2,84,417.09 crore.

The stock is nearing its 52-week high and low of Rs 580 apiece, while its 52-week low is Rs 376.90 apiece.

Wipro Bonus Issue:

The tech player has announced the issuance of bonus equity shares in the proportion of 1:1. This means that the company will allot 1 (One) bonus equity share of Rs 2/- each for every 1 (One) fully paid-up equity share held and a bonus issue.

Wipro earlier said, “The record date for reckoning eligible shareholders entitled to receive bonus shares will be communicated later.” Further, Wipro emphasized that the actual number of bonus equity shares to be issued will be determined based on the fully paid-up equity share capital as of the record date.

Wipro has a strong track record of bonus issuance. The last bonus issuance by Wipro was a 1:3 ratio in March 2019. This followed a bonus issue of 1:1 in June 2017, and a 2:3 bonus issue in June 2010.

Further, the company delivered 1:1 bonuses and 2:1 bonuses in August and June of 2005 and 2004 respectively.

Wipro BUY Recommendation:

For the overall IT, broker Antique Stock Broking in its report highlighted that the average tech spending as a percentage of sales improved to 6.7% vs. 6.3% in 2QCY24. Overall, the US 3QCY24 banking results show an average of 6% YoY growth in tech spending. The improvement in spending trend is in line with the commentary of Indian IT companies which indicates that the Financial Services segment in the US continues to see an increase in discretionary spend, in capital markets, mortgages, cards, and payments.

Meanwhile, 2QFY25 results of Indian IT companies reported an above average growth in the BFSI vertical for the second consecutive quarter, it said.

Accordingly, Antique has recommended HOLD on Wipro shares with target price at Rs 575.

Also, brokerage Motilal Oswal has given NEUTRAL rating with target price at Rs 550 apiece.

At the latest, Wipro and Menzies Aviation announced an expansion to the partnership signed last year. Together they will deploy the innovative MACH cargo management system across 28 new stations by 2025, showcasing a commitment to leveraging technology for global aviation cargo industry transformation.

Through its cloud-based architecture and seamless integration capabilities, Wipro and Menzies Aviation have significantly improved operational processes and data accuracy across the network. The end-to-end system has elevated business efficiencies, employee experiences, and customer service through increased automation, it said.

Story first published: Wednesday, November 6, 2024, 1:41 [IST]