Investing in Wipro Limited (Wipro) in August 1996 has proven to be a lucrative decision, thanks to the company's consistent shareholder-friendly policies, including multiple bonus issues and stock splits. Let's delve into how an initial holding of 1,600 shares, valued at ₹1,000 in August 1996, would have evolved over time.
Initial Investment:
Date: August 1996
Number of Shares Purchased: 1,600
Total Investment Value: ₹1,000
Corporate Actions Since 1996:
Wipro has undertaken several corporate actions that have significantly increased the number of shares held by investors:
1. Bonus Issue (October 20, 1997):
Ratio: 3:1 (three additional shares for every one share held)
Calculation: 1,600 shares × 3 = 4,800 bonus shares
Total Shares Post-Bonus: 1,600 + 4,800 = 6,400 shares
2. Stock Split (September 27, 1999):
Ratio: 5:1 (each share split into five)
Calculation: 6,400 shares × 5 = 32,000 shares
3. Bonus Issue (June 25, 2004):
Ratio: 3:1
Calculation: 32,000 shares × 3 = 96,000 bonus shares
Total Shares Post-Bonus: 32,000 + 96,000 = 128,000 shares
4. Bonus Issue (August 22, 2005):
Ratio: 2:1
Calculation: 128,000 shares × 2 = 256,000 bonus shares
Total Shares Post-Bonus: 128,000 + 256,000 = 384,000 shares
5. Bonus Issue (June 15, 2010):
Ratio: 5:3
Calculation: 384,000 shares × (5/3) = 640,000 shares
6. Bonus Issue (June 13, 2017):
Ratio: 2:1
Calculation: 640,000 shares × 2 = 1,280,000 bonus shares
Total Shares Post-Bonus: 640,000 + 1,280,000 = 1,920,000 shares
7. Bonus Issue (March 6, 2019):
Ratio: 4:3
Calculation: 1,920,000 shares × (4/3) = 2,560,000 shares
8. Bonus Issue (December 3, 2024):
Ratio: 1:1
Calculation: 2,560,000 shares × 1 = 2,560,000 bonus shares
Total Shares Post-Bonus: 2,560,000 + 2,560,000 = 5,120,000 shares
Current Valuation:
Current Share Price (as of February 7, 2025): ₹318.00
Total Value: 5,120,000 shares × ₹318.00 = ₹1,628,160,000
An initial investment of ₹1,000 in Wipro in August 1996, resulting in the purchase of 1,600 shares, would have grown to 5,120,000 shares through various bonus issues and stock splits. At the current share price of ₹318.00, this investment would be valued at approximately ₹163 crores. This remarkable growth underscores the power of long-term investing and the significant impact of corporate actions on shareholder value.
*Note: The above calculations are based on historical corporate actions and the current share price as of
February 7, 2025. Future actual investment outcomes may vary due to market fluctuations and other factors.*
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