Wipro to consider issuing bonus shares at October board meeting

Bengaluru-based IT major Wipro on Sunday announced that its board will consider issuing bonus shares. The result will be communicated together with the financial results for the second quarter of fiscal year 2025.

A bonus issue occurs when a company distributes free shares to existing shareholders. This can be chosen as an alternative to paying dividends. By increasing the number of shares available on the market, companies can improve liquidity, making it easier for investors to buy and sell shares. However, although the total number of shares increases in a bonus issue, the overall value of the investment remains unchanged.

The last time the company issued such shares was in 2019, when it issued one bonus share for every three shares held by shareholders.

“The Board of Directors of the Company will consider a proposal for the issue of bonus shares in accordance with the applicable provisions of the Companies Act, 2013, the Securities and Exchange Board of India (Issuance of Capital and Disclosure Requirements) Regulations , 2018, at its meeting scheduled for October 16th and 17th. The outcome of the Board meeting will be communicated to the stock exchanges shortly after the conclusion of the Board meeting on October 17,” the company said in the document.