Have non-promoter investors of Wipro received bonus shares in the demerger proposal. Well, technically it cannot be called a bonus issue, but at the end of the day an investor will be getting 1 share for every 8.25 shares held by him. Here is how it works.
As per the various options given by Wipro a shareholder of the company holding 5 shares will get 1 share of Wipro Enterprises, as per the first option. Now, if he does not want to own shares of Wipro enterprises, promoters from their personal share holding will give them 1 share of the listed company for every 1.65 share of Wipro Enterprise. Thus, for every 8.25 shares (1 X 1.65) shares Wipro held by the investor, he will receive an extra share of the company which had been owned by the promoter.
This option would result in the investor getting 12.12% extra shares of Wipro.
In case of a bonus announcement by a company there is a dilution in equity, which is not the case in Wipro. Further, an advantage to shareholders will be of holding a pure technology company.
For an investor of Wipro who has bought the company’s share with a positive outlook for its IT business, the third option offered by the company of allocating promoters shares makes more sense than the other two. In the first option, shareholders will be holding shares of an unlisted company, with no clarity on when it will be listed, while in the second they will be getting a return of 7%, that too after a year.