Wipro recovers after Tuesday's steep slide

Meanwhile, the S&P BSE Sensex was up 44.49 points or 0.24% at 18,270.97

On BSE, 1.24 lakh shares were traded in the counter as against average daily volume of 2.05 lakh shares in the past one quarter.

The stock hit a high of Rs 403 and a low of Rs 396.70 so far during the day. The stock had hit a 52-week low of Rs 325.60 on 30 July 2012. The stock had hit a 52-week high of Rs 462.85 on 5 April 2013.

The stock underperformed the market over the past one month till 9 April 2013, declining 11.52% compared with the Sensex's 7.4% fall. The scrip, however, outperformed the market in past one quarter, sliding 0.86% as against Sensex's 7.32% fall.

The large-cap IT company has equity capital of Rs 492.57 crore. Face value per share is Rs 2.

Shares of Wipro slumped 12.19% to Rs 393.80 on Tuesday, 9 April 2013 after the stock turned ex-scheme of arrangement. The company demerged its non-IT businesses like consumer care and lighting into a new company to focus exclusively on information technology. Wipro had announced after market hours on 1 April 2013 that the scheme of arrangement for the demerger of diversified business of Wipro approved by the board of directors on 1 November 2012 became effective from 31 March 2013. Further, the company had fixed 11 April 2013 as the record rate for the purpose of determining the members of the company to whom notice will be sent and shares of the resulting company will be allotted and who will be entitled to the exchange right pursuant to the scheme of arrangement.

In November 2012, the Wipro board had approved 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 into a privately held company to be named Wipro Enterprises.

As part of the deal, investors would receive one equity share with face value of Rs 10 in Wipro Enterprises for every five equity shares with face value of Rs 2 each in Wipro, or receive one 7% redeemable preference share in Wipro Enterprises, with face value of Rs 50, for every five equity shares of Wipro. They also have the option to exchange the equity shares of Wipro Enterprises and receive as consideration equity shares of Wipro held by the promoter. The exchange ratio will be one equity share in Wipro for every 1.65 equity shares in Wipro Enterprises. Each redeemable preference shares shall have a maturity of 12 months and shall be redeemed at value of Rs 235.20.

Wipro announces Q4 March 2013 results on 19 April 2013. Wipro's consolidated net profit rose 7% to Rs 1716.40 crore on 3% growth in income from operations to Rs 10989.10 crore in Q3 December 2012 over Q2 September 2012.

Wipro provides comprehensive IT solutions and services, including systems integration, information systems outsourcing, IT enabled services, package implementation, software application development and maintenance, and research and development services to corporations globally.

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