Wipro's $1.45 bn deal with Capco disappoints Street; here's why

Wipro on Thursday said the acquisition will provide it access to 30 new large banking and financial clients and strengthen its position in the BFSI sector

Dalal Street gave a lukewarm response to Wipro's buyout worth $1.45 billion (over Rs 10,500 crore), its biggest ever, of London-headquartered Capco as the shares of the firm tanked 4 per cent on the BSE to Rs 421.30 in Friday's trade following the announcement of the deal.

Wipro on Thursday said the acquisition will provide it access to 30 new large banking and financial clients and strengthen its position in the Banking, Financial Services and Insurance (BFSI) sector. The BFSI segment accounted for over 30 per cent of Wipro's IT services revenue in the December 2020 quarter that stood at