Wipro says date for ADR bonus issue not decided
Mon Jun 12 2017
Mark Cooper (1809 articles)

Wipro says date for ADR bonus issue not decided

Software exporter Wipro Ltd (WIPR.NS) (WIT.N) said on Monday the payable date for its American Depository Receipts (ADR) bonus issue is yet to be determined.

The clarification from India’s third-largest software services company came after its U.S.-listed shares slumped nearly 49 percent to $ 5.35 in premarket trading.

The trading of the shares, which was halted for a while, are currently down 1.5 percent at $ 10.29.

“The company felt that it was important to clarify to the market that the payable date and ex-dividend date for its ADR bonus issue, or stock dividend, are yet to be determined,” Wipro said.

Wipro, in May, told its investors that the board has fixed June 14 as the record date to determine eligible shareholders entitled to receive bonus share equity for its Indian-listed shares. (bit.ly/2rnj8K3)

In April, the company announced the issue of bonus shares in 1:1 ratio and said that its board would also consider a proposal for buyback of shares around July.

Wipro’s U.S.-listed shares have been down nearly 6 percent over the past four sessions, following media reports of a sale of a part or whole company. However, the company denied the news reports last week.

Wipro, like other Indian software exporters, has been struggling with U.S. President Donald Trump’s tough stance on H1-B visa rules.

Trump has ordered a review of the U.S. visa programme that brings high-skilled foreign workers into the country, potentially affecting hiring plans of technology firms and outsourcing companies.

 

Mark Cooper

Mark Cooper

Mark Cooper is Political / Stock Market Correspondent. He has been covering Global Stock Markets for more than 6 years.

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