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Wipro Q3 result: Bonus shares issue of 1:3 soon; 7 things to know
Bonus shares are given to the existing shareholders by a company as fully paid shares free of charge.
Apart from posting a stellar result during December 2018 (Q3FY19) quarter, Wipro also brought in some good news for its investors by announcing issuance of bonus shares. Wipro will soon issue bonus equity shares in the e proportion of 1 :3, that is 1 (One) bonus equity share of Rs 2 each for every 3 (Three) fully paid-up equity shares held and a bonus issue [stock dividend on American Depository Share (ADS)] of 1 (One) ADS for every 3 (Three) ADS held, as on the record date, subject to approval of the Members of the Company.
Bonus shares are given to the existing shareholders by a company as fully paid shares free of charge. This is done in order to capitalize a part of the company's retained earnings for conversion of its share premium account.
Here's a list of 7 things you should know about Wipro's Bonus share.
1. The bonus equity shares will be issued out of free reserves and/or the securities premium account and/or the capital redemption reserve account of the Company available as at December 31, 2018.
2. 1 :3 that is 1 (One) bonus equity share of Rs 2/- each for every 3 (Three) fully paid-up equity shares held (including ADS holders) as on the record date to be decided.
3. The pre-bonus paid-up equity share capital as on the date of this letter is Rs 905 crore consisting of 452,50,76,573 equity shares of Rs 2/- each.
4. Post-bonus paid-up equity share capital is expected to be around Rs 1206.68 crore consisting of 603,34,35,431 equity shares of Rs 2/- each. The actual number of bonus equity shares to be issued will be determined based on the paid-up share capital as on the record date.
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5. Over Rs 301.67 crore is required as free reserves or securities premium or capital redemption reserve for implementing the bonus issue. The actual amount will be determined based on the paid-up share capital on the record date.
6. Available amount for free reserves or securities premium or capital redemption reserve for capitalization is of Rs 46,847.9 crore as on December 2018.
7. Wipro bonus issue is expected to take place from the date of board approval which is by March 17,2019.
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