Wipro raises stake in US' Opera

Says no plans to buy further stake in the company

Amid rising demand for newer technologies, India's third-largest IT services company Wipro said on Thursday that it has increased its stake in US-based big data and analytics company Opera Solutions to 12.5 per cent by acquiring an additional six per cent.

However, the company brushed aside rumours that it was looking to either buy a majority stake in Opera Solutions or acquire the company.

Wipro had acquired a 6.5 per cent stake in Opera Solutions in May 2013 for about $30 million (Rs 162 crore). According to analysts, the company might have spent a similar amount to pick up the additional stake.

“We had the option to increase our stake in Opera, so we did,” said Suresh Senapaty, chief financial officer, Wipro. “We have no plans to buy the company or even raise our stake in it further, because it is a product company and we want to be product-agnostic. We don’t want to associate ourselves with any one product.”

Opera Solutions was Wipro's second investment in the analytics segment. In April 2012, it had acquired Australia-based Promax Applications Group for AUD $35 million (about $36.5 million or Rs 192 crore).

Most large and mid-sized Indian IT services companies have said they are witnessing an increased client interest in new technologies such as social, mobile, analytics, and cloud (SMAC).

Even as the ticket size of orders in these segments is small at this stage, Wipro's larger peer Infosys had earlier this week said there is huge momentum in this space. Additionally, according to some industry sources, Infosys is also in the process of re-organising its analytics operations in order to grow the business better.

"Opera Solutions' machine learning expertise combined with Wipro's global delivery model will help the two build a strong go-to-market strategy offering big data and analytics solutions to clients," said Senapaty.

Meanwhile, Wipro's vice-president for investor relations Sridhar Ramasubbu quit the firm to join Opera Solutions as chief financial officer. Senapaty clarified that Ramasubbu's move was a personal decision and that the company had no role in the same.