Wipro slumps over 12%; m-cap down by Rs 13,446 crore
Mumbai: Wipro's scrip on Tuesday slumped 12.19 percent, wiping-off Rs 13,446 crore from its market value, on the first day of trade as a standalone IT stock after the company hived-off its three non-IT business divisions into a privately-held company.
During the day, shares of the company had tanked 12.89 percent to Rs 390.60.
On NSE, the stock closed at Rs 393.60, down 12.30 percent from its previous close.
By the end of trade, the company lost Rs 13,446 crore from its market value which was Rs 96,987 crore.
In terms of volume, 12.03 lakh shares of the company changed hands on the BSE, while over 70.85 lakh shares were traded on the NSE.
"We expect Wipro to trade at 10 percent lower than current market price post this event (demerger). The demerger will enable the company to focus on its growth strategy in the IT services and products space and increase its competitiveness in the market," Edelweiss Research said in a report.
In November last year, the Wipro board had approved the demerger of the non-IT businesses -- Wipro Consumer Care & Lighting (including furniture business), Wipro Infrastructure Engineering (hydraulics and water businesses) and Medical Diagnostic Product & Services business -- into a privately- held company to be named 'Wipro Enterprises Ltd'.
The demerger has been effective from March 31.
"...The scheme of arrangement for the demerger of 'Diversified Business' of the company approved by the board of director on November 1, 2012 is effective from March 31, 2013," Wipro had said in a filing to the BSE on April 1.
Wipro had last week said that April 11, 2013, has been fixed as the record date for the purpose of determining the members of the company to whom Securities of the Resulting Company will be allotted and who will be entitled to the Exchange Right pursuant to the Scheme of Arrangement (Election and Exchange Notice).
It is likely to take about six weeks from the record date for the whole process to be completed, it had said.
Wipro Ltd will remain a publicly listed company that will focus exclusively on information technology, while Wipro Enterprises will be an unlisted company.
Promoter's held 78.29 percent stake in the company as on December 31, 2012.
In the stock market, the BSE benchmark Sensex ended at 18,226.48, down 211.30 points.