Along with the company’s financial results for the quarter that ended in September 2024, the Board of Wipro will think about awarding bonus shares to investors.
“The Board will be considering a proposal for issue of bonus shares, in accordance with the applicable provisions of the Companies Act, 2013 (including the rules and regulations framed thereunder), the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, at its meeting scheduled to be held over October 16-17,” according to the filing.
In addition to trying to lower the stock price so that investors can afford it, a company can sometimes offer bonus shares to its shareholders in an effort to boost the stock’s liquidity.
Bonus shares are extra shares that a business issues to its current shareholders that are fully paid. Bonus shares are distributed by a company to its shareholders without requiring them to pay additional fees. The quantity of company shares you currently own determines how many bonus shares you will receive.
Shares may be obtained by any shareholder who had shares of the company prior to the record date, which is set by the company.
Once awarded, the bonus shares will be treated equally with the existing equity shares and have all the same rights, including the ability to fully participate in any suggested dividend payments and corporate actions.