Tue Dec 03 08:42:36 UTC 2024: ## Wipro Share Price Plunge a Glitch, Not a Crash
**Mumbai, India –** A dramatic, albeit misleading, 50% drop in Wipro’s share price on some trading platforms Tuesday caused a brief wave of investor confusion. The apparent plunge, however, was not a reflection of the company’s actual market performance, but rather a consequence of its 1:1 bonus issue.
The bonus issue, which went ex-bonus today, doubled the number of outstanding shares. This resulted in a proportionate adjustment of the share price. While Wipro opened 1.09% higher at Rs 295.50 on the Bombay Stock Exchange (BSE), some brokerage apps initially displayed the unadjusted price from the previous day (Rs 584.55), creating the illusion of a near 50% decline.
Wipro’s 1:1 bonus, its first since 2019, means shareholders received one additional share for every share held. The company, which had Rs 56,808 crore in reserves as of September 30th, stated that the total investment value for shareholders remains unchanged. The post-bonus paid-up equity share capital will be approximately Rs 20,925.9 crore, with over 10 billion shares in circulation.
Despite recent challenges in the demand environment and client-specific issues impacting performance, analysts remain positive about Wipro’s future, citing its diversified portfolio, new leadership under CEO Srini Pallia, and attractive valuations. The company’s share buyback program last year further indicates a positive outlook. Early signs of growth in the Banking, Financial Services, and Insurance (BFSI) vertical are also encouraging. The initial confusion surrounding the share price drop has been clarified, reassuring investors that the company’s fundamental value remains unaffected.
First Piper 