Tue Dec 03 14:11:49 UTC 2024: ## Wipro’s Bonus Issue Sends Shareholder Portfolios Soaring
**Bangalore, India** – Wipro shareholders woke up to a seemingly halved portfolio value on Wednesday, prompting initial alarm. However, this dramatic drop is a result of the company’s 1:1 bonus share issue going ex-dividend on Tuesday. Instead of losses, shareholders will soon see their holdings double as additional shares are credited to their demat accounts in the coming days.
This bonus issue, the fourth in 15 years, highlights the significant wealth creation potential of long-term investment in strong companies, particularly when factoring in corporate actions like bonus shares. A case in point: an investment of ₹10,000 in Wipro shares in 2009, when the share price was ₹50, would have yielded a staggering return.
By 2024, considering the three previous bonus issues (a 1:1 in 2010, a 1:3 in 2017, and a 2:3 in 2019), an initial investment of 200 shares would have grown to 888 shares. With Wipro’s share price closing at ₹584.55 on November 29th, 2024, this initial investment would be worth ₹519,080 – a remarkable 51.9 times the original investment.
This example underscores the power of long-term investment in fundamentally strong companies and the significant role corporate actions, like bonus share issuances, play in wealth generation. Wipro’s performance serves as a shining example of the rewards of patience and strategic investment in the stock market.
First Piper 