Wipro The Wealth Builder

The overwhelming power and strength of Equity market lies in the quality of company that we deal with. The company has to be investor friendly and wealth creators. Wipro Ltd is a company which falls into that coveted category and the operations of the company played a very important part in the development of country's pride and earnings. When you are a man of focus and determination, and smart to trust a quality company like Wipro, and keep faith and belief you will surely be in the process of building wealth. You should also have the qualities of great patience to watch your wealth grow, not panic in adverse conditions and not get excited during profit conditions. People with tremendous discipline and self belief are too few that they accumulate wealth without ever having to seriously risk anything big.

If you want to become a man of wealth, you need to put in lot of work and capital to run the fortune over a period of time. You need to mobilise experts to help you in your business, generate profit, retain the earned profit, manage the resources and all these things take a lot of effort.

What if you do not have capital to organise your business?
What if you do not have the expertise to run your business?
What if you do not have enough resource to organise your business?
What if you do not have the right business setup? ....

Your quest to become a millionaire gradually fades away and your dreams remain only dreams.

But when you have tremendous patience, self belief and trust, money management rules, well you are surely on the way to become a Millionaire. You don't need to have a big inventory or a big office or the supporting staff to whom you need to pay big.

It is now the year 1980. You saw a Software Company by name WIPRO. You applied for their equity share, not much only 100 shares at 100 Indian Rupees each. That is sufficient to see that you become a Big Millionaire, correction a Billionaire.

Alright, you now have 100 shares @ 100 rupees and your Equity Shares with Wipro is worth 10,000 Indian Rupees. You don't have office, nor storage sheds. You live in your own cozy home. Well.. time just tickles..and we come to the next year, a new year that is to bring you a spring of pleasant surprise!

Wipro's profit and business grew well in a short time with the support of people like you. They wanted to reward all those shareholders who supported them, reposed faith in them, encouraged them to build their business to the next level. They declared Bonus at 1:1 ratio, one share for one share held in the year 1981!

Your holdings of Wipro's share have gone 2 folds, from 100 to 200! You did nothing other than trusting your belief and showing your patience. A small reward for you!

You were paid dividends and time went on... Now you are experiencing another surprise gift, one more Bonus from Wipro...the year is 1985.

Declaration of Bonus at 1:1 ratio. Your holdings no longer remain 200 shares with Wipro...it has become 400 Shares. You started to believe your networth is moving up...

Just the joy is not over as yet...another year..another announcement that Wipro wanted to convert all 100 Rupees Equity to 10 Rupees Equity and decided to split. The quantity of your shares in the year 1986 has jumped from 400 to 4000 shares! You now firmly believe, this is the company that is investor friendly and continue to extend your support.

The year 1987 was another surprise...this time around you are not surprised because you have the habit of receiving Bonus shares every now and then...so this time was also another 1:1 bonus, and you are a proud owner of 8000 Shares.. You have your wealth rolling and decided to ride the rewarding trend.

Time is moving on...you never get tired to get bonus news from Wipro, nor does Wipro gets tired to reward you..how long does it really go and how much do you keep getting.. let us go through the Risk and Reward magic in reality.


Year 1987 1 : 1 bonus Your Share Holdings 8,000
Year 1989 1 : 1 bonus Your Share Holdings 16,000
Year 1992 1 : 1 bonus Your Share Holdings 32,000
Year 1995 1 : 1 bonus Your share Holdings 64,000
Year 1997 2 : 1 bonus Your share Holdings 192,000
Year 1999 split to Rs 2 Your share Holdings 960,000
Year 2004 2 : 1 bonus Your share Holdings 2,880,000
Year 2005 1 : 1 bonus Your share Holdings 5,760,000

Now, you are in the year 2010 . What is your Networth?

Year 2010 3 : 2 bonus Your share Holdings 9,600,000

You are a proud owner of 9 Million and 600 Thousand Shares...Its mamoth, staggering, exhilarating..a whooping 408 crore Rupees!! At the rate of 425 Rupees per Share!!

Correct my mathematics, I would like to get corrected.

The Bonus journey continues...