Wipro bonus shares: Power of long-term investment! ₹10,000 turns to ₹5 lakh in 15 years | Stock Market News
Source: Live Mint
Wipro share price traded marginally lower on Tuesday, December 3 as the IT stock turns ex-date for bonus issue.
Wipro shares turns ex-date for bonus issue on Tuesday in the ratio of 1:1. The company has announced the Wipro bonus shares record date as on December 3. Investors holding the IT stock today will be eligible for Wipro bonus shares. The 1:1 bonus ratio indicates that investors holding one Wipro share will receive one extra bonus share.
“the Board of Directors has fixed Tuesday, December 3, 2024 as the Record Date for the purpose of determining the equity shareholders of the Company eligible for bonus equity shares (including Stock Dividend on ADS) of the Company,” Wipro said in a stock exchange filing on November 21.
Wipro bonus shares announcement was made while the company declared its financial results for the second quarter of FY25.
Wipro Bonus shares history
This is the IT major’s fourth bonus issue in the last 15 years, according to data available on BSE website. The latest Wipro bonus issue is the first since 2019.
The company had announced bonus issue of shares in the ratio of 1:3 in 2019, wherein one bonus share was given for every three shares held.
Wipro had earlier announced a bonus issue in 2017 in the ratio of 1:1. Wipro shares traded ex-date for bonus on June 13, 2017 and the record date was June 14, 2017.
In 2010, Wipro declared a bonus issue in the ratio of 2:3, wherein two equity shares were given for every three shares held. Wipro stock traded ex-date on June 15, 2010 and the record date was June 16, 2010.
Wipro share price returns
Wipro share price has given stellar returns in the past 15 years. During the global financial crisis, if you had invested ₹10,000 in Wipro shares in 2009 when the stock traded around ₹50 per share, your investment would have grown significantly, thanks to the company’s bonus shares over the years.
In 2009, Wipro’s share price around ₹50 enabled an investor to buy 200 shares for ₹10,000. Over the years, the company rewarded its shareholders with three bonus issues: a 1:1 bonus in 2010, a 1:3 bonus in 2017, and a 2:3 bonus in 2019. These bonuses increased the shareholding from 200 to 888 shares.
Wipro share price closed at ₹584.55 on November 29, 2024. The 888 Wipro shares are now valued at ₹5,19,080. This represents an impressive 51.9x growth on the original investment.
This example highlights the power of long-term investing in fundamentally strong companies. It’s not just about share price appreciation; corporate actions like bonuses can play a significant role in wealth creation. Wipro remains a shining example of how patience pays in the stock market.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
