The Hindu Business Line : Dividend makes Premji richer by Rs 292 cr

A 250-per cent cash dividend on par value of Rs 2 per share would make Wipro Ltd's promoter, Mr Azim Premji, richer by some Rs 292 crore. Mr Premji has an 83.11-per cent equity stake in Wipro.

This year, however, Mr Premji's dividend earnings are far lower than the over Rs 500 crore that he took home last year.

At that time, the company had declared a one-time special dividend of Rs 25 on the eve of crossing the billion-dollar revenue mark in addition to the regular dividend.

As on the quarter ended March 2005, Wipro had a paid-up, issued and subscribed equity base of over 70.35 crore shares, of which Mr Premji owns over 58.47 crore shares.

The 1:1 bonus issue, when approved finally by the shareholders at the annual general meeting in July, is expected to improve the liquidity of the Wipro stock. However, this could adversely impact the earnings per share, analysts said.

Commenting on the rationale behind the bonus issue, Mr Suresh Senapaty, Corporate Vice-President (Finance), said the idea was to increase the overall number of shares traded so that more people can buy them. Mr Senapaty said the board has not taken any decision on the ADS issue.

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Dividend makes Premji richer by Rs 292 cr