NEW DELHI: Wipro shares advanced as much as 4.65 per cent in early trade on Wednesday after the scrip turned ex-bonus in the ratio of 1:3.The scrip hit a high of Rs 285.40 in the early session, up more than 4 per cent.
Wipro in February received approval from the majority of its shareholders for the issue of bonus shares and increase in authorised share capital.
The firm had fixed March 7 as the record date to determine eligible shareholders for 1:3 bonus shares.
In January, Wipros board had approved an issue of bonus shares wherein shareholders will get one bonus share for every three shares held by them.In a regulatory filing, Wipro said the "resolutions have been approved by members with requisite majority and shall be deemed to have been passed on February 22, 2019, being the last date of receipt of postal ballot forms/e-voting".Consequently, the company's authorised share capital stands increased from Rs 1,126.50 crore to Rs 2,526.50 crore by creation of additional 700 crore equity shares of Rs 2 each, it added.In its January filing, Wipro had said the company had an aggregate amount of Rs 46,847.9 crore as on December 2018 in free reserves, securities premium account and capital redemption reserve account.Ex-bonus means after the record date.
It is the date on which the share price is adjusted on stock exchanges according to the bonus ratio.