Mon Oct 14 03:50:00 UTC 2024: ## Wipro Shares Soar on Bonus Issue Announcement
Shares of IT major Wipro Ltd surged by 3% in early trading on Monday, following the company’s announcement that it will consider a bonus share issue on October 17th.
The stock climbed to Rs 545.35 on the Bombay Stock Exchange (BSE), pushing Wipro’s market capitalization to Rs 2.83 lakh crore.
This news comes ahead of the company’s September quarter earnings announcement, also scheduled for October 17th. Analysts expect Wipro to report a revenue decline of 1% to 1% sequentially in constant currency terms for the quarter.
Wipro’s last bonus share issue took place in 2019, where shareholders received one bonus share for every three shares held.
The announcement sparked optimism among investors, leading to increased trading activity. However, technical indicators suggest the stock is currently neither overbought nor oversold.
The IT industry is expected to see a steady quarter, driven by a gradual recovery in the US BFSI sector. Mid-tier companies are anticipated to outperform in the medium term.
Wipro’s Q1 results showed a 5.21% year-on-year increase in consolidated net profit to Rs 3,036.60 crore, while revenue fell 3.79% to Rs 21,963.80 crore.
Analysts will be closely watching Wipro’s Q2 results for insights into deal pipelines, pricing scenarios, and the company’s outlook on growth, operating margins, and its Products & Platforms (P&P) business.
First Piper 