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Wipro shares trade 1:3 ex-bonus; stock climbs 5%

At 10:33 am, Wipro was trading at Rs 282, up 3.5 per cent, the top gainer among benchmark index Nifty 50.

SI Reporter  |  Mumbai 

Wipro

Shares of gained 5 per cent to Rs 285 apiece on the (NSE) in early morning trade, after the stock turned ex-in the ratio of 1:3.

At 10:33 am, was trading at Rs 282, up 3.5 per cent, the top gainer among benchmark index A combined 11.25 million equity shares changed hands on the counter on the and so far.

The board of directors of at their meeting held on January 18, had recommended issue of equity shares in the proportion of 1:3 (one equity share for every three equity shares held). The company fixed March 7, 2019, as the to determine eligible shareholders entitled to receive the equity shares.

The stock of had hit a 52-week high of Rs 292 (adjusted to bonus issue) on February 26, in intra-day trade also its highest level since February 24, 2000, on the

In the past eight months, Wipro has outperformed the market by surging 45 per cent, as compared to 4 per cent rise in the index.

“The high treasury component to the 2Q/3QFY19 margin beat limits us from extrapolating even though admittedly Wipro has done a good job on cost containment; cuts in our FY20/FY21 EPS estimates are small (1 per cent/2 per cent). Also, Wipro’s cash generation remains efficient, the slow revenue growth notwithstanding. The capital allocation policy (45-50 per cent pay-out over a block of two years) implies 3.3 per cent yield at current levels,” analysts at said in company update report on January 19, 2019.


First Published: Wed, March 06 2019. 10:55 IST
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