Wipro trades 1:1 ex-bonus; shares slip over 1%

NEW DELHI: Shares of Wipro declined over 1.5 per cent in early trade as the stock was trading ex-bonus on Tuesday in the ratio of 1:1.

The scrip was trading 0.38 per cent down at Rs 262.15 around 9.50 am (IST). Shares of the company opened at Rs 261.80 and touched a high and low of Rs 266.70 and Rs 258.80, respectively, in trade so far. Benchmark BSE Sensex was up 64.10 points, or 0.21 per cent, at 31,159.80.

Wipro made an announcement on bonus shares on April 25, 2017. The ratio was one bonus share for every existing equity share. The record date for bonus issue is June 14, 2017 while the ex-date for the same is June 13. Consequently, Wipro’s share price halved today from Monday’s close of Rs 526 per share.

ICICIdirect.com in a research note said, “Our revised target price for Wipro is now at Rs 250 per share post bonus issue of equity shares.”

For the quarter ended March 31, 2017, the company reported net profit of Rs 2,267 crore, up 7.19 per cent, against Rs 2,114.80 crore in the corresponding quarter last year.

Wipro on Monday also said the date for issuing bonus or stock dividend to the holders of its American Depository Receipts is yet to be finalised, amid the ADRs witnessing steep fluctuations in pre-market trading on the New York Stock Exchange.

ADRs are instruments denominated in US dollars and the underlying shares are that of a foreign company.

According to reports, the exchange has suspended trading in Wipro ADRs. As per trading data, the company's ADRs plunged over 47 per cent to $10.45 in pre-market trade on Monday.