Why Wipro shares are showing 50% fall on some mobile apps

A bonus issue increases the number of outstanding equity shares, but reduces share price in proportion to the number of bonus shares issued.

Wipro Ltd shares turned ex-reward in the proportion of 1:1 today. Adapted to the reward issue, the Wipro stock was exchanging 1.09 percent higher at Rs 295.50 on BSE at open. However, the scrip was down 49.45 percent over the previous shutting cost (unadjusted) of Rs 584.55. Conceivable exchanging applications of specific businesses may be showing the unadjusted Wipro share cost for yesterday and, consequently, recommending a 50 percent-odd fall on the counter.

Since December 3 is the record date for the corporate activity, Wipro will decide qualified investors for reward issue today as it were. The reward offer would be credited to financial backers soon. 

reward issue builds the quantity of extraordinary value shares, yet diminishes share cost in relation to the quantity of extra offers gave. Extra offers are given from free holds and excess of the organization, determined to increment liquidity on the counter. On account of Wipro Ltd, the reward proportion was set at 1:1, and that implies one new completely settled up portion of Wipro would be given to existing investors for each one offer they held.

Wipro had a total measure of Rs 56,808 crore as at September 30, comprising of free holds, protections premium record and capital recovery save account. Post the reward issue, the settled up value share capital of Wipro is supposed to associate with Rs 20,925,943,128, comprising of 10,462,971,564 value portions of Rs 2 each.

The genuine number of reward value offers to be given will be resolved in view of the completely settled up value share capital as on the record date for example today.

This reward issue is Wipro's first starting around 2019. Wipro's 2019 extra offers were given in 1:3 proportion. The stock went ex-reward on Walk 6, 2019. Wipro had announced extra offers in the proportion of 1:1 in 2017. Before that, Wipro reported extra offers in the proportion of 2:3 in 2010. It reported extra offers in 2005 (1:1) and 2004 (2:1). In 1997, Wipro proclaimed a reward issue in the 2:1 proportion. It additionally declared 1:1 extra issues each in 1995 and 1992.