Wipro shares witnessed fluctuations as investors eagerly wait for bonus shares, record dates, and recent news updates. Here’s the detailed information on it.
Wipro Shares: Key Insights into Recent Trends and Developments
One of India’s prominent IT companies has been grabbing more eyeballs due to shifts in its stock price and corporate activities. As of December 2, 2024, Wipro share price was ₹295.50 on the Bombay Stock Exchange (BSE). This price reflects an adjustment following the company’s recent bonus issue, which led to some confusion among investors.
Trading platforms showed a drastic drop of nearly 50% from the previous day’s closing price of ₹584.55, but this was not a genuine loss of value. Instead, the adjustment was a direct result of the company’s 1:1 bonus share insurance, which increased the total number of shares in circulation while halving the price per share.
Wipro Bonus Shares Record Date
The bonus share record date for Wipro was set for December 2, 2024. To define it, each shareholder is qualified to get an additional share apart from the share that they have already purchased. This marks the company’s first bonus issue since 2019. At that time, it offered a ratio of 1:3 bonus. The motto behind such a bonus issue is often to improve the stock’s liquidity. This in turn, makes the shares more affordable and accessible to a greater number of investors by reducing the price per share.
Share Price Dynamics
Though some platforms showed a steep decline in the share price, Wipro’s stock portrayed stable opening at ₹295.50 on December 2, reflecting a moderate 1.09% increase after the bonus adjustment. Wipro’s current market value is approx. ₹368.97 billion, with a price-to-earnings (P/E) ratio of 27.15.
This ratio shows a picture to the investors of how Wipro’s stock is valued in relation to its earnings. Not only that, but also helps in checking its potential growth and profitability compared to its industry companies.
Why WIPRO shares are Falling?
Let’s look at few factors as to why the WIPRO’s shares are seeing a decline:
Bonus Shares Adjustment: The foremost cause of the drop in the shares is the adjustment that was done from the bonus share. This led to artificial inflation of the decline in the percentage that was shown on some trading platforms.
Concerns around Financial Performance: Analysts did express concerns about the recent performance . It included the revenue growth targets that were missed. It also included the muted guidance for the upcoming quarters. The company saw a decline by 3.79% Y-O-Y in Q1 FY25, which has been an alarming concern around its growth.
Market Sentiment: This comes under one of the miscellaneous reasons for the fluctuation. Since every market is prone to some sentiments, (market or investor). The ongoing challenges in meeting the demand and client issues performance might get affected. This may further influence the share prices.
News Today
- As of December 3, 2024, Wipro’s stock performance is noteworthy, reflecting several positive developments:
- • Bonus Share Issue: After the announcement of 1:1 bonus share issue, with the record set date for December 3, 2024, it did improve investors confidence and positively impacted the stock price.
- • Share Price Movement: Over the past year, Wipro’s stock has shown a 43% return, and it recently reached a 52-week high of ₹583.
- • Financial Growth: The revenue of Wipro improved from ₹22,690 crores to ₹23,260 crores over the last two quarters. The average quarterly growth is 2.5%. Overall, the total net profit has increased consistently over the five quarters, which is currently at ₹3,200 crores.
- Though WIPRO’s recent share price might have let the investors in tension, due to declines linked to bonus issue, but it is also equally important and essential to look beyond these. The company’s decisions regarding bonus shares are designed to improve the liquidity and shareholder value in the long term. Despite these challenges, Wipro’s performance will be closely monitored by the analysts and investors too.
