Wipro slips after settling National Grid to settle suit for $75 million

Wipro fell 0.54% to Rs 276.65 at 10:49 IST on BSE after the company said it settled a lawsuit filed by the National Grid US for $75 million.

The announcement was made on Saturday, 4 August 2018.

Meanwhile, the S&P BSE Sensex was up 165.19 points, or 0.44% to 37,721.35.

On the BSE, 25,000 shares were traded in the counter so far compared with average daily volumes of 2.94 lakh shares in the past two weeks. The stock had hit a high of Rs 282 and a low of Rs 276 so far during the day. The stock hit a 52-week high of Rs 334.75 on 16 January 2018. The stock hit a 52-week low of Rs 253.50 on 6 June 2018.

Wipro said it effected a settlement for the release of all claims under the lawsuit with National Grid US and a Stipulation of Discontinuance of the lawsuit has been filed in the US District Court for the Eastern District of New York. The formalities for withdrawal of the lawsuit are expected to be completed shortly. The settlement has been effected for an amount of $75 million and is without admission of liability or wrongdoing of any kind by the parties. The lawsuit was filed by National Grid US in 2017 seeking damages amounting to $140 million plus additional costs related to an ERP implementation project. National Grid has been a valued customer of Wipro for over a decade and both organisations have had a mutually beneficial relationship over the years.

Wipro said it believes that this settlement will be commercially beneficial for the company and will help it remain focused on growth. The settlement is expected to reflect in the financials of Wipro for the quarter ending 30 September 2018.

Wipro's consolidated net profit rose 16.27% to Rs 2093.80 crore on 1.52% increase in net sales to Rs 13977.70 crore in Q1 June 2018 over Q4 March 2018.

Wipro is a leading global information technology, consulting and business process services company.

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