Wipro inches up after announcing acquisition of Viteos Group

Wipro rose 0.06% to Rs 556 at 13:20 IST on BSE after the company said it has signed a definitive agreement to acquire Viteos Group for a purchase consideration of $130 million.

The announcement was made before market hours today, 23 December 2015.

Meanwhile, the S&P BSE Sensex was up 237.34 points or 0.93% at 25,827.99.

On BSE, so far 15,000 shares were traded in the counter as against average daily volume of 71,572 shares in the past one quarter.

The stock was volatile. The stock rose as much as 0.63% at the day's high of Rs 559.20 so far during the day. The stock fell as much as 0.32% at the day's low of Rs 553.85 so far during the day. The stock had hit a 52-week high of Rs 676.90 on 11 March 2015. The stock had hit a 52-week low of Rs 512.55 on 24 April 2015.

The stock had underperformed the market over the past one month till 22 December 2015, sliding 2.21% compared with Sensex's 1.07% fall. The scrip had also underperformed the market in past one quarter, declining 6.56% as against Sensex's 0.24% fall.

The large-cap company has equity capital of Rs 494.07 crore. Face value per share is Rs 2.

Headquartered in New Jersey, Viteos Group is a business process as-a-service (BpaaS) provider for the alternative investment management industry. Wipro said that the acquisition of Viteos will expand its capital markets portfolio in fund accounting services and enhance its business process services (BPS) capabilities. Viteos licenses its proprietary platform which offers transformation and integration post-trade operations. Wipro said that the company will be able to leverage this proprietary platform to launch solutions across other segments of capital market. These technology based solutions will bring in non-linear and higher revenue realisation for the company. The acquisition would be completed in Q4 March 2016, Wipro said.

Viteos Group reported a revenue of $26.5 million in the financial year 2014-15.

On consolidated basis, Wipro's net profit rose 2.18% to Rs 2235.40 crore on 1.58% growth in net sales to Rs 12566.80 crore in Q2 September 2015 over Q1 June 2015.

Wipro is one of the leading IT services provider.

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