Wipro Limited, one of India's leading IT companies, has announced that its Board of Directors will meet on October 16-17, 2024, to discuss the possibility of issuing bonus shares. This proposal comes just ahead of the company's Q2 FY25 results, which are set to be revealed on October 17, 2024.
The decision will be made in accordance with the Companies Act, 2013, and the Securities and Exchange Board of India (SEBI) Regulations. If approved, this move could significantly impact investor sentiment, potentially boosting the company's stock value.
Recent Financial Performance
In the last quarter (Q1 FY25), Wipro reported a 4.6% increase in its consolidated net profit, reaching Rs 3,003.2 crore. However, its revenue saw a slight dip of 3.8%, amounting to Rs 21,963.8 crore. Despite this, Wipro’s CEO and MD, Srini Pallia, expressed confidence in the company’s ability to improve its performance in Q2. He highlighted the company's ongoing efforts with its ai360 strategy, focusing on integrating artificial intelligence into its operations and preparing its workforce for an AI-driven future.
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What Are Bonus Shares?
Bonus shares are additional shares that a company gives to its existing shareholders without any extra cost. This is usually done to reward investors when the company performs well. For Wipro, this could mean that current shareholders will receive extra shares in proportion to the number of shares they already hold.
Market Impact
Ahead of this announcement, Wipro's shares closed at Rs 528.95 on the Bombay Stock Exchange (BSE), up by 0.77%. Investors and market analysts are closely monitoring the outcome of this board meeting, as the decision could influence Wipro’s stock price.
Stay tuned for updates from the October 17, 2024, meeting, where the company’s bonus shares proposal and quarterly results will be officially revealed.