Advertisement

HindustanTimes Tue,16 Sep 2014

Wipro slumps after splitting off non-IT businesses

Reuters   April 09, 2013
First Published: 14:23 IST(9/4/2013) | Last Updated: 18:48 IST(10/4/2013)

Shares in Wipro Ltd, India's No. 3 software services provider, fell as much as 11.3 percent on Tuesday in the first trading session as a standalone IT stock after the company split off its other businesses into a separate unit.

Advertisement



Wipro's split-off announced in November 2012 legally took effect on March 31, but was not reflected in its shares until Tuesday, meaning the company's shares no longer take into account the contributions from its non-IT businesses.

Wipro's shares were down 1.6 percent as of 11:23 a.m.

Wipro had offered shareholders various options including getting shares in the IT business, the listed company, in exchange for the value of their non-IT holdings or converting their holdings into shares in the privately held Wipro Enterprises Limited, the non-IT business.

Those options will no longer be available to anyone buying Wipro shares from Tuesday, with the record date, or the date for executing the options, set for April 11. It takes two trading days for a purchase to be reflected in a shareholders 'demat' or electronic account.

Wipro's IT business accounted for about 94 percent of the combined company's revenue.


Advertisement
more from Business

Rupee up 11 paise against dollar in early trade

The rupee recovered from over one-month low by rising 11 paise to 61.02 against the dollar in early trade on Tuesday at the Interbank Foreign Exchange market on selling of the American currency by exporters and banks.
markets
Advertisement
Most Popular
Advertisement
Advertisement
Copyright © 2014 HT Media Limited. All Rights Reserved