The Wipro Limited (WIPRO) board has announced a 1:1 bonus issue, meaning shareholders will receive one additional share for every share they hold. The record date for this bonus issue is December 03, 2024. You can check the announcement from the company here.
Bonus issue details
| Company | Wipro Limited (WIPRO) |
|---|---|
| Bonus Ratio | 1:1 |
| Record Date | December 03, 2024 |
| Ex-Date | December 03, 2024 |
| Eligibility | Shareholders holding or buying shares on or before the ex-date (December 02, 2024) |
| Credit Timeline | Within 15 working days from the record date (December 03, 2024) |
What is a Bonus Issue?
A bonus issue is a way for a company to reward its shareholders by giving them additional shares at no extra cost. However, the value of your investment remains the same.
When a company issues bonus shares, the number of shares increases, but the investment value remains the same. The stock price is adjusted according to the bonus ratio, this should not be mistaken for a correction or a fall in stock price.
Example: If you held 10 shares of WIPRO priced at ₹550 each, and the company announces a 1:1 bonus, you’ll receive 10 more shares. Your total holdings will now be 20 shares, and the share price will adjust to ₹275. However, your overall investment value remains unchanged at ₹5,500.
Who is eligible for the bonus issue?
Shareholders who hold or buy WIPRO shares on or before the ex-date (December 02, 2024) will be eligible. To qualify, the shares must be credited to your demat account by the record date (December 03, 2024).
When will the bonus shares reflect in my demat account?
The bonus shares are usually credited to your demat account within 15 working days from the record date. Initially, they may appear under a temporary ISIN on Console and will take an additional 4-5 working days to be assigned a permanent ISIN. Once assigned, the shares will reflect in Kite and will be available for trading.
What happens to my holdings and P&L on Kite and Console after the ex-date?
After the ex-date, the share price will be adjusted to reflect the bonus issue, which may temporarily cause a drop in your P&L on Kite and Console.
Once the bonus shares are credited to your demat account, your holdings will be updated with the revised quantity. The buy average price will also be recalculated and updated within a couple of days after the shares are credited.
Also, we adjust the OHLC data and charts on Kite for corporate actions like bonuses, stock splits, and rights issues. We’ve explained it here.
Why has my average price dropped after the bonus issue?
Bonus shares are credited at no cost, and their value is considered zero. When these shares are added to your demat account, the average buy price is recalculated by dividing the original investment cost across the increased number of shares, reducing the average price.
Example: If you held 10 shares at ₹550 each and received 10 bonus shares, your total holdings become 20 shares.
The average price is now calculated as: ₹5,500 (original cost) / 20 shares = ₹275 per share.
Can I sell my shares before the bonus shares are credited?
Yes, you can sell the shares normally if you wish to. This will not affect your trades or your P&L, as the bonus shares are allotted based on your holdings as of the record date, December 03, 2024. Click here to learn more about the effect of bonus issues on your holdings.
Will I get corporate action benefits if my stocks are pledged with Zerodha?
Yes, you will receive corporate action benefits even if your stocks are pledged with us. Once the shares from the corporate action are credited with a permanent ISIN, they will be automatically re-pledged, and the collateral margin will be adjusted accordingly.
You can refer to all current and upcoming corporate actions on this list (DOC).
Impact on F&O positions
Traders holding F&O positions of the underlying announcing bonus issue or any corporate action are not eligible for corporate action benefits.
However, since the stock price adjusts, exchanges modify the lot size and strike prices of contracts accordingly. These adjustments are done in such a way that the value of the position of the market participants before and on the ex-date remains the same.
You can refer to this post to understand how WIPRO’s bonus issue impacts its F&O contracts:
